(9 days left!) Be the first with a 200MP camera! Visit Samsung to reserve and gain $100 in Samsung credit!

SamMobile has affiliate and sponsored partnerships. If you buy something through one of these links, we may earn a commission. Learn more.

Samsung’s quarterly profit declined in Q3 2022, first time in three years

Business
By 

Last updated: October 27th, 2022 at 08:31 UTC+02:00

After choosing Lee Jae-yong as its Executive Chairman, Samsung Electronics announced its earnings for Q3 2022. Earlier this month, the company revealed that its operating profit is expected to decline. Now, the company has reported its full earnings, revealing its first operating profit decline in three years.

Although Samsung Electronics’ revenue was up by 4% at KRW 76.78 trillion (around $54.1 billion), compared to Q3 2021, its operating profit was down by more than 31%, at KRW 10.85 trillion (around $7.65B). This profit drop comes almost a year after the company announced its second-highest profit in its history. Most of this downturn is due to a slump in the semiconductor memory market.

Samsung’s profit drop was mainly due to the weak semiconductor memory chip market

Samsung Foundry 3nm Semiconductor Chip Wafer

Samsung is best known for its smartphones, wearables, and TVs, but it makes most of its cash from its semiconductor memory chip business. After the extreme chip shortage during the COVID-19 pandemic, there has been an oversupply of memory chips over the past few months, leading to a price crash.

The South Korean firm’s chip business reported revenue of KRW 23 trillion, a 14% drop year-over-year. This segment recorded an operating profit of KRW 5.12 trillion, which is down by almost half compared to its numbers from Q2 2022. However, Samsung Foundry, the company’s contract chip-making business, had the highest revenue ever in its history.

Samsung Semiconductor Chip Plant Pyeongtaek Campus South Korea

The company has been portraying a weak outlook for its chip business for months. This slump isn’t likely to end anytime soon as inflation, geopolitical issues, and rising interest rates lead to lower consumer spending. At the media briefing, Samsung Electronics’ co-CEO and the head of Samsung Semiconductor, Kyung Kye-hyun, said that the company doesn’t see any clear momentum next year either. To remedy the situation, Samsung is planning to increase the production of high-end memory chips used in servers as the demand for such chips is expected to remain higher.

The prices of NAND flash memory chips are expected to drop by 15%-20% in Q4 2022, according to memory market research firm TrendForce. The DRAM chip market is expected to face a similar decline over the coming months. Samsung said that it expects its annual revenue will be the highest in its history, beating its revenue records from 2021.

Galaxy Z Flip 4, Galaxy Z Fold 4, and Galaxy S sales rose in Q3 2022

The rising inflation and weaker consumer demand hurt Samsung’s consumer electronics segment. However, its smartphone division (Samsung MX) saw strong growth for the Galaxy S and Galaxy Z (Galaxy Z Flip 4 and Galaxy Z Fold 4) lineup of devices. The company said it would expand its foldable and high-end smartphones next year.

Samsung DX’s operating profit was KRW 3.53 trillion in Q3 2022, and KRW 3.24 trillion out of that was contributed by the smartphone division. Profits from the company’s home appliances and TV division were low due to weak consumer demand.

Samsung S95B QD-OLED TV

Samsung Display makes QLED, OLED, and QD-OLED panels for mobile devices, laptops, monitors, and TVs. It contributed KRW 1.98 trillion to Samsung Electronics’ operating profit for Q3 2022, which is higher than Q3 2021 and Q2 2022. It said that its supply share increased in Apple’s supply chain for the iPhone 14 series.

Business EarningsSamsung DisplaySamsung DXSamsung ElectronicsSamsung FoundrySamsung MXSamsung NetworksSamsung SemiconductorSystem LSI
Load 0 comments

You might also like

Samsung will continue to use special Snapdragon chip next year

For the first time in history, Samsung will use a Qualcomm Snapdragon chipset in all its Galaxy S series smartphones (Galaxy S23) sold worldwide. And this change comes after years of disappointments with its in-house Exynos processors. However, Samsung isn’t using the same Snapdragon chip everyone else uses. The South Korean firm will use a […]

  • By Asif Iqbal Shaik
  • 4 hours ago

Samsung’s new 120Hz OLED display for laptops could be used in Galaxy Book 3 Ultra

Samsung Display has unveiled a new OLED panel for laptops. It measures 16 inches diagonally, has a 3K resolution with a 16:10 aspect ratio, and features a 120Hz refresh rate. The company claims that it is the world’s first laptop OLED panel with an integrated touchscreen. It revealed that the panel would be used in […]

  • By Asif Iqbal Shaik
  • 8 hours ago

Samsung signs multi-year 5G patent deal with Nokia

Samsung, the biggest smartphone brand in the world, has signed a multi-year 5G patent agreement with Nokia. As a part of this long-term agreement, the South Korean firm will use Nokia’s fundamental inventions in 5G and other technologies in its smartphones and other mobile devices. Samsung Electronics will make royalty payments to Nokia for its […]

  • By Asif Iqbal Shaik
  • 1 day ago

Samsung is working on Lifelike Pixels for OLED screens

Just days before unveiling the Galaxy S23 series, Samsung applied for a trademark for a new display technology that will be used in future products. The South Korean firm’s display manufacturing arm appears to be making improvements to its already stellar OLED technology. In South Korea, Samsung has applied for trademark registration (via GalaxyClub) for […]

  • By Asif Iqbal Shaik
  • 4 days ago

Xiaomi phone with Samsung E6 OLED breaks Android display brightness record

Samsung recently showcased its newest OLED panel—E6 Super AMOLED—for smartphones that can reach up to 2,000 nits of peak brightness. It is the same panel used in the iPhone 14 Pro and the iPhone 14 Pro Max. Now, Android smartphone makers have started using the same panel, and Xiaomi’s latest phone seems to have broken […]

  • By Asif Iqbal Shaik
  • 4 days ago

Samsung is reportedly making OLED displays for iPad Pro, MacBook Pro

Samsung has always been Apple’s biggest OLED panel supplier. It makes OLED screens for high-end iPhones and some Apple Watches. Now, the companies are reportedly working together on OLED screens for upcoming iPads and MacBooks. According to a report from South Korea’s ET News, Apple and Samsung Display have started working on OLED panel development […]

  • By Asif Iqbal Shaik
  • 4 days ago