Samsung's earnings should rebound in Q3 as demand for chips recovers

General

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Because of the economic downturn, the semiconductor market is going through one of its roughest patches in recent years. And because Samsung Electronics is among the world's biggest semiconductor manufacturers, its Q2 profit dropped significantly. The company recently announced a 95% profit decline for Q2 2023 compared to a year ago. However, market analysts believe that Samsung will rebound in Q3.

Due to sluggish sales and the economic downturn, Samsung has had high DRAM and NAND flash memory chip inventories. In turn, this led to lower prices and less demand from key customers from the data center and smartphone industries.

Clients are running out of excess inventory, which is good news for Samsung

According to industry analysts (via Korea Times), Samsung's quarterly earnings in Q3 2023 should bounce back due to a combination of chip production cuts and client companies eating through inventories. SK Security analysts say that “the decline of memory chip inventory will be in full swing from the third quarter,” which means Samsung should start selling more semiconductors.

Micron Technology CEO said: “We expect margins to improve as industry supply-demand balance is greatly restored.” Meanwhile, FnGuide estimates Samsung's operating profit in Q3 and Q4 to hit 3.69 trillion won and 4.98 trillion won, respectively, signaling a steady increase.

Mihai Matei - Senior Editor

[email protected]

First Samsung device: SGH-A800

Mihai is a blogger and column writer at SamMobile. His first Samsung phone was an A800 which took a lot of beating, and a part of him still misses the novelty of the clamshell design. In his free time, he enjoys watching shows, documentaries, and stand-up comedy; listening to music, taking walks, and occasionally playing old(er) video games.

General Samsung Electronics Samsung Semiconductor

Samsung's earnings should rebound in Q3 as demand for chips recovers

Clients are running out of excess inventory, which is good news for Samsung

Mihai Matei - Senior Editor

[email protected]

First Samsung device: SGH-A800

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