Samsung profits have tanked in the fourth quarter of last year by a noticeable figure following declining demand of its and slowing sales of its memory chips. There are various reasons for this issue, so here are all the details.
The South Korean tech giant recently share his financial report that showcased that the company saw a sizeable fall of near 70 percent in Q4 2022. This is a major fall in profits compared to the same period last year. There are many reasons for the fall in profits, with low demand for semiconductors and smartphones due to global economic issues. The brand reported that it had expected an operating profit of 4.3 trillion won and a revenue of around 70 trillion won for the fourth quarter of 2022.
However, it saw a revenue drop of approximately 9 percent year on year while its operating profits fell by 69 percent during this same time. Furthermore, the operating profits had also dropped by more than half from the third quarter, which is also when Samsung saw its first year on year profit decline in three years. This was also due to falling chip demand that led to weakening sales in the market.
Samsung added that it saw a significant drop in earnings from the memory business due to lackluster demand while also seeing weaker smartphone sales. It stated that this trend continues amid the uncertainties with the surrounding external factors that have caused a “potential global economic downturn.” The fall in sale also led to a decline in the average sales prices of the chips to lower than expected levels.
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(Via)
