Samsung’s profit could nosedive in Q4 2022, and 2023 isn't looking any better

Samsung will soon face some tough times. Global investment and banking firm Goldman Sachs has estimated Samsung Electronics' Q4 2022 operating profit to be around KRW 5.8 trillion (~$4.5 billion). Earlier, the investment banking company had estimated the company’s operating profit in the same quarter to be KRW 7.8 trillion (~$6 billion).

The latest projection from Goldman Sachs is 25.6% lower than the previous one. If the estimated number turns out to be true, Samsung Electronics' Q4 2022 operating profit would be 58.3% lower compared to Q4 2021.

Samsung Foundry could post its lowest profit in the last 13 years

Goldman Sachs has made the downward adjustment mainly due to Samsung’s reduced operating profit in the semiconductor business, which is a direct result of the decreased demand for semiconductor chips globally. According to the company, Samsung will reap only KRW 1.5 trillion from its chips business in Q4 2022, which is a whopping 83% drop compared to Q4 2021.

The company’s operating profit from the semiconductor business has never been less than 2 trillion won since 2009. So, it looks like Samsung’s going to post a record-low profit from the chip business this quarter. Goldman Sachs says that the lower operating profit is also a result of the company’s decreased shipments of smartphones and TVs globally.

Samsung’s profit will drop even further next year, but 2024 looks good

What’s even more concerning is that Goldman Sachs predicts Samsung’s operating profit to be even lower next year, which, once again, will be due to the decreased demand for semiconductor chips globally.

On the positive side of things, few analysts predict that the chip market will take a turnaround in 2024, which could benefit Samsung in a huge way as the company is heavily investing in expanding its chip factories globally.