Profit decreased by 95%
Samsung has been hit by weak chip demand and a slump in the smartphone market, posting a record drop in second-quarter earnings.
The oversupply has driven prices down in the DRAM and RAM industry. In addition, the demand for smartphones has decreased. According to Samsung Electronics’ earnings report, the company’s revenue was $47.21 billion, down 22% from a year earlier, while profits were down 95%. This is the biggest drop since 2009.
Samsung is hoping for a change in the situation, saying that the second half of 2023 should be more rosy for it.
Samsung reported a record drop in profits over the past 14 years
“Global demand is expected to gradually recover in the second half of the year, which should lead to higher profits from component manufacturing,” Samsung said in its earnings report. “However, lingering macroeconomic risks could be a problem for such a recovery in demand.”
Samsung expects demand for DRAM and RAM for advanced computing models such as ChatGPT to help boost sales. This demand prevented the price from falling even lower.
The company will focus on high value-added products such as DDR5, LPDDR5x and HBM. The company also expects to increase investment in infrastructure, research and development, and packaging technology.
On the back of this news, Samsung shares rose 2.29% on Thursday, July 27.
