Samsung DX enters emergency mode, cuts business expenses

A company official cited by BusinessKorea said that Samsung is “suffering a slump in sales of TVs and home appliances,” adding, “We can hardly expect a quick recovery in sales now.” One financial company expects Samsung Electronics' operating profit to fall 29% in 2023 compared to this year.

Samsung says that high exchange and interest rates, supply chain disruptions, and diminishing consumer demand in the current economic landscape contributed to this recent shift to emergency mode.

Cutting expenses in several areas

To mitigate its losses, Samsung Electronics has decided to cut down on overseas business trips and global marketing events for the Device Experience division, which is responsible for smartphones, TVs, and home appliances.

In addition, the report says that Samsung's new cost-cutting campaign will reduce expenses and trips to overseas exhibitions, including CES 2023 in Las Vegas. Samsung may or may not be present on the show floor, but the company intends to reveal new devices through video conferencing, i.e., virtual events.

This is in contrast with the previous rumors about the launch of the Galaxy S23 lineup in 2023, which state that the company will go back to a more traditional launch of showcasing the phones in person in front of an audience. It could be that Samsung will cut down on business trips and events for some devices but not for its most important releases, such as the Galaxy S23.

Samsung reportedly plans to unveil the Galaxy S23 at a full-fledged Unpacked event in San Francisco in early February 2023. The exact reveal date is unclear, but the event should take place during the first half of the month.