Samsung announced its Q1 2023 earnings today and the results aren't that impressive. The company has posted its lowest profit in 14 years as its chip division struggled and lost $3.4 billion.
The company's mobile division did better, though, posting a 3% operating profit increase compared to the same period last year. Samsung has given a hint of its strategy for the current quarter, Q2 2023, and it includes a big marketing push for foldables.
New foldable phones are coming later this year
Samsung highlighted in its earnings release that overall smartphone demand decreased in Q1 2023, however, the premium segment grew both in value an dvolume this past quarter. Samsung's Galaxy S23 series has been a hit as it brought in strong sales, particularly for the most expensive model, the Galaxy S23 Ultra.
The company expects overall market demand to slightly recover this quarter in the low-to-mid segment. Therefore, it will throw its weight behind the Galaxy S23 series and continue supporting the steady sales of its most recent flagship.
Samsung will also increase the marketing for its Galaxy Z Fold and Galaxy Z Flip foldable models. This is meant to increase awareness ahead of the new models that are due in the second half. We hear that Samsung's next Unpacked event for the Galaxy Z Fold 5 and Galaxy Z Flip 5 may take place in late July.
The company further expects that the smartphone market will increase in both volume and value in the second half of this year as the global economic situation improves. The mobile division thus expects strong demand in the premium segment which it would be able to fulfill through its new foldable phones.
Increasing the competitiveness of its tablets and wearables is also on the agenda and with new Galaxy Tab and Galaxy Watch models expected in the second half of this year, it's certain that Samsung will push ahead in this segment as well, that has historically remained flat following the significant growth during the pandemic.
