Repercussions of the global economic downturn have made it to the earning reports of the major tech giants. Some companies are on the ledge and some are trying to recover from the past few months. The situation is not so different for the South Korean tech giant – Samsung considering the earnings guidance report of last quarter. The global giant is going through tough times, but the signs of increasing demand are paving the way for its recovery, per the new report.
Must See: Samsung Electronics faces steep drop in Profits amid Chip glut
Samsung Q3 2023 Earnings Report
Samsung’s profit declined by 78% in Q3, 2023, but still, it is better than the company’s expectations. The increasing demand in the chip market is seen as early signs of recovery from the severe downfall.
As per the report, Samsung Electronic’s total revenue could be around KRW 67 trillion ($50.07 billion) with a profit of around KRW 2.4 trillion ($1.79 billion). In actuality, the company performed 400% better than Q3 2023 where it managed to rake KRW 0.6 trillion ($456 Million).
Apart from the increasing demands, Samsung’s increasing focus on high-end chips like DRAM is the primary reason for the recovery. It is expected to recover from the severe downfall in the coming quarters due to a rebound in the semiconductor chip demand. These chips are primarily used in AI and are expected to regain further its actual demand by the end of this year.
However, Samsung posted a profit of KWR 3 Trillion in Mobile Business, which is quite similar to last year’s Q3 earnings.
Apart from high-interest rates, the global economic slowdown has led to a downfall in the demand for consumer electronic goods, forcing manufacturers to reduce production.
Early this year, Samsung posted its worst Quarter profit in the last 14 years, the lowest since 2009.
Related:
