HomeTechnologySamsung Suffers 35% Profit Decline Amid Weak Chip Market

Samsung Suffers 35% Profit Decline Amid Weak Chip Market

Samsung Electronics Co. saw its operating profit slump by 35% during the past quarter, registering its sixth consecutive quarterly decline. The South Korean company’s stock fell by 2.5% on Tuesday following the announcement.

Operating income for the quarter was 2.8 trillion won ($2.1 billion)—24% short of estimates—while operating revenue fell to 67 trillion won. For the entirety of 2023, the company reported its slimmest operating profit over the past 15 years.

The tech giant’s declining profits come as the demand for smartphones and memory chips continues to remain sluggish, thereby dampening hopes of a market recovery for 2024. “This shows that the rebound is slower than we all thought,” Tom Kang, research director at Counterpoint Technology Market Research said of Samsung’s performance. “Prices are not rising that fast and the demand from certain sectors is not that strong.”

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