Samsung’s profits for Q4 2022 tumble 70%
Tech companies and businesses are going through tough times. These economic conditions are not just unique to one company. Rather they have impacted nearly every sector of the business community. Many tech companies like Apple, Samsung, and others are going through difficult times. Recently, the tech firm Samsung has shared earnings guidance for Q4 2022. As per internal estimates Samsung, the operating profit is going to be around KRW 4.3 trillion (around $3.37 billion) from an overall income of around KRW 70 trillion (around $55 billion).
A few days ago some analyst predicted the current situation and their effect on profit earnings. It now seems like the situation is in accordance with their predictions. The newly shared details of operating profit by Samsung indicate a 9% decrease in revenue compared to the last quarter of the last year. Additionally, the data points out a massive fall of 69% from the perspective of the operating profit of Q4 2021. This amounts to an operating profit that is the lowest in a time period of eight years.
Reportedly, the low earnings can be attributed to various factors. The factors include the less demand and sales of smartphones as well as semiconductor chips across the globe. Supply and demand have been badly impacted by the global economic downturn.
On the other hand, if we compare the earnings of Samsung with the third quarter of 2022, it accounts for a 50% profit decrease. The company has mentioned that it is possibly due to less demand for the chips. Since the larger share of Samsung’s revenue comes from the chip manufacturing business. The chips business was affected by the controlled finances and limited investments of Samsung’s clients. In addition to this, the prices of the chips also decreased. This factor worsens the condition even more. It is anticipated that this is the first time in ten years that the chip business Samsung will face such a shortfall in operating profit.
Well, these conditions are not just presented to Samsung. Weak sales and economic downturn is affecting other companies as well. According to experts, such conditions will remain till the end of this year. However, things might get to improve by next year. We can expect them to get back on track by 2024.
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