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.”

The post Samsung Suffers 35% Profit Decline Amid Weak Chip Market appeared first on theprimarymarket.com.

According to The Korea Herald, Samsung’s earnings have plummeted as much as 96% compared to the same period in 2022 and will come to around $455 million (600 billion won). It also expects sales of $47.7 billion (63 trillion won), which would mark a 19% drop.

The company believes that the lesser demand for semiconductors had the biggest impact on its profit, which is why it’s shifting its strategy while hoping to clear out its inventory to a degree.

“We’re adjusting to lower memory production to a meaningful level… in addition to optimizing line operations that are already underway,” Samsung said in a statement provided to the media outlet.

While rival chip makers SK Hynix and Micron Technology previously cut their output, Samsung resisted the urge to make the same, hoping to grab a bigger share of the market. However, the market conditions have forced the company to get on board. Analysts now predict that chip prices to get a boost due to cuts.

The post Samsung to Scale Down Memory Chip Production Amid Expected Profit Slide appeared first on theprimarymarket.com.

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.”

The post Samsung Suffers 35% Profit Decline Amid Weak Chip Market appeared first on theprimarymarket.com.

According to The Korea Herald, Samsung’s earnings have plummeted as much as 96% compared to the same period in 2022 and will come to around $455 million (600 billion won). It also expects sales of $47.7 billion (63 trillion won), which would mark a 19% drop.

The company believes that the lesser demand for semiconductors had the biggest impact on its profit, which is why it’s shifting its strategy while hoping to clear out its inventory to a degree.

“We’re adjusting to lower memory production to a meaningful level… in addition to optimizing line operations that are already underway,” Samsung said in a statement provided to the media outlet.

While rival chip makers SK Hynix and Micron Technology previously cut their output, Samsung resisted the urge to make the same, hoping to grab a bigger share of the market. However, the market conditions have forced the company to get on board. Analysts now predict that chip prices to get a boost due to cuts.

The post Samsung to Scale Down Memory Chip Production Amid Expected Profit Slide appeared first on theprimarymarket.com.