Awesome early Summer Samsung Galaxy deals!

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

Samsung’s profits decline by a massive 95% on weak chip demand

Business
By 

Last updated: April 27th, 2023 at 13:42 UTC+02:00

The global semiconductor demand has remained weak over the past year and that has significantly affected Samsung’s ability to turn a decent profit. The firm’s semiconductor division is its biggest cash cow and when it’s under pressure, the effects are visible on the company’s bottom line.

Samsung has announced its Q1 2023 earnings today and they’re in line with the guidance it had provided earlier. The operating profit of Samsung Electronics is down 95% compared to the same period last year. This is Samsung’s smallest profit for any quarter in 14 years.

Conditions may improve only slightly in Q2 2023

Samsung posted 63.75 trillion Korean won ($47.6 billion) in revenue this past quarter, down 18% compared to KRW 77.8 trillion (around $61.19 billion) in Q1 2022. 640 billion Korean won (roughly $478.55 million), down a massive 95% from KRW 14.12 trillion (around $11.10 billion) in the same period last year.

The lack of demand for chip products is the primary reason for Samsung’s profit being eviscerated. Its chip division posted a 4.58 trillion won ($3.41 billion) loss for the quarter as the demand declined considerably and memory chip prices fell by nearly 70% over the past nine months.

Samsung doesn’t expect the conditions to improve considerably in the current quarter, only projecting a limited recovery for Q2 2023. It does forecast that companies may start accumulating chips ahead of the third quarter, and that could contribute to a nominal earnings recovery.

The company’s mobile division performed better in comparison. Its revenue is up 22% compared to the previous quarter and the operating profit is up 3% compared to Q1 2022. This is a testament to the success of the Galaxy S23 series, as Samsung points out that its new premium models brought in strong sales.

The company intends to continue supporting the steady sales of the Galaxy S23 series while also boosting sales of new mass-market devices like the Galaxy A54 and the Galaxy A34.

Business EarningsSamsung Electronics
Load comments

You might also like

Qualcomm provided more than just the Galaxy S23 Ultra’s amazing chipset

Qualcomm provided more than just the Galaxy S23 Ultra’s amazing chipset

To the benefit of customers worldwide, Samsung did the unthinkable and gave the Galaxy S23 series a brilliant Snapdragon chipset in every market, excluding Exynos from the equation. As a result, the Galaxy S23 Ultra is one of the best Android phones ever made, especially since Samsung worked with Qualcomm to tune the Snapdragon 8 […]

  • By Mihai Matei
  • 50 mins ago
South Korean consumers can now self repair their Galaxy products

South Korean consumers can now self repair their Galaxy products

In an official newsroom post, Samsung Korea has announced that consumers can self-repair their Galaxy products starting today. Samsung is introducing a self-repair program in South Korea that will guide Galaxy product owners on how to repair their products. With the self-repair program in Korea, Samsung Galaxy owners will not only be able to visit […]

  • By Sagar Naresh
  • 1 day ago
Samsung smartwatches lose 2nd place to Indian brand Fire-Boltt

Samsung smartwatches lose 2nd place to Indian brand Fire-Boltt

Samsung smartwatches have grown in popularity in North America, where the company’s Galaxy Watch shipments in Q1 increased by 15% from the previous quarter. This, however, hasn’t helped the company retain its 2nd place on a global scale, as shipments in other markets outside North America declined 15% year-on-year and 21% quarter-on-quarter. Despite their success […]

  • By Mihai Matei
  • 5 days ago
Samsung opens pet care shop to help you take care of animal companions the smart way

Samsung opens pet care shop to help you take care of animal companions the smart way

Samsung has launched an online pet care store on its website in South Korea, designed to help SmartThings users that have animal companions pick the right pet-specific smart home products and appliances. The company says it will also sell supplies necessary for raising pets. Although Samsung doesn’t have that many smart home products designed exclusively […]

  • By Mihai Matei
  • 5 days ago
Samsung has new Q-series soundbars for sale in the USA for Memorial Day

Samsung has new Q-series soundbars for sale in the USA for Memorial Day

Samsung is augmenting its soundbar lineup in the USA with a handful of models that were originally announced earlier this year at CES in Las Vegas. And thanks to an ongoing Memorial Day deal, these new Samsung soundbars are also available at discount prices. The company is adding the HW-Q990C, HW-Q900C, HW-Q800C, and HW-Q700C to […]

  • By Mihai Matei
  • 6 days ago
Leaks say Motorola Razr 40 Ultra in Europe might be overpriced

Leaks say Motorola Razr 40 Ultra in Europe might be overpriced

While Samsung is preparing the Galaxy Z Flip 5 for an alleged announcement in late July, Motorola is trying to get a head start and intends to reveal its new foldable flip phone, the Razr 40 Ultra, on June 1. The phone will compete with Samsung’s Z Flip series in many markets, including Europe, where […]

  • By Mihai Matei
  • 6 days ago