Blood red accounts for Samsung, lost 95.4% of operating profit
The South Korean tech giant Samsung Electronics reported Thursday the lowest quarterly operating profit in 14 years, due to the continued decline in prices of chip of memory and the weakness of demand. Samsung reported an 87.4% decline in net income, which fell to 1.4 trillion won ($1.04 billion) for the first quarter compared to 11.13 trillion won in the same quarter a year earlier .
Operating profit for the quarter also fell 95.4% year-on-year to 640 billion won, while the quarterly turnover it fell 18% to 63.75 trillion won.
The company expects a gradual recovery in demand for semiconductors in the second half of 2023. In the second quarter, Samsung Display Corporation (DSC) forecasts a decrease in results compared to the previous year, due to the slowdown of the global economy which increases seasonal effects. There dsc plans to maintain its dominance in the high-end market and maximize sales by driving adoption of OLED panels across the range of its major customers and adapting their mass production of new products in the second half.
As for large panels, while demand will likely remain weak, sales are expected to grow as new products launch for 2023. In the second half, the smartphone market is expected to grow in both volume and value terms , thanks to signs of global economic recovery. Consequentially, MX Business expects particularly strong demand in the premium segment.
#Samsung #accounts #disastrous #lost #profit