2023 has only just begun but there are clear signs that it's going to be a tough year for everyone because of the global economic environment. Companies are having to adapt to the challenging dynamic as demand slows down due to high global inflation.
Samsung isn't immune to these challenges either and the company is preparing to weather the storm. Samsung Electronics Vice Chairman and co-CEO Han Jong-hee has said that the Korean conglomerate is preparing to face a tough year ahead.
Samsung is preparing for the challenges ahead
Samsung has seen its profits decline considerably in recent quarters. Just last week, the company provided its earnings estimate for Q4 2022. It expects operating profit to fall almost 70% compared to Q1 2022. This would be Samsung's lowest operating profit in eight years.
Speaking at a press conference at the sidelines of the Consumer Electronics Show 2023 in Las Vegas, Han said that “Overlapping crises, including the prolonged economic recession, geopolitical tension, supply chain risks and climate change, have drastically increased uncertainty in the market.”
He reiterated Samsung's commitment to driving growth from robotics and the metaverse. Han highlighted that Samsung's ability to overcome these crises will determine the success or failure of its efforts in the future.
In addition to futuristic technologies, Samsung will remain focused on the fundamental values that have served it well in previous downturns. As the CEO who oversees the smartphone business, Han said that Samsung will be working to improve its smartphone market share in China that's currently around 2%.
The company aims to launch more products and services that are tailored for Chinese consumers in order to improve its fortunes in one of the world's most lucrative markets.
