The braking of the chips brings down the profit of Samsung
Samsung has registered the worst quarter since 2009 due to the slowdown in consumer spending on electronics and a global glut of microchip which has affected the memory core business. The South Korean giant, world leader in memory chips and smartphones, announced an operating profit that fell to 640 billion won (-95.5% per annum), you seem to 480 million dollars about. Net profit stood at 1,570 billion (-86,1%) and sales at 63.75 trillion (-18,1%).
Decline in demand
The real problem is the semiconductor market where Samsung accused a operational loss of 4.6 trillion won ($3.4 billion) from a profit of 8,500 billion in the first quarter of 2022. The drop in demand, linked to weak global economic growth, has hit other major players in the sector including the South Korean SK Hynix and the American Micron. Underscoring the difficulties, revenues in the semiconductor sector were down by 49% every year. And the prospects are not better.
Smartphone sales
Samsung believes that the current difficult market conditions must persist and is therefore focusing “on theincrease in competitiveness technology and on the demand for high-end products”. Memory chips, both Dram and Nand flash, are used in a wide variety of products and equipment, from personal computer e smartphone ai server. But the industry’s heavy reliance on consumer products causes major management and performance swings. Despite the problems of the semiconductor sector, Samsung has managed to stay idle thanks to the sales of smartphones, displays and appliances. The division including smartphones scored 3.9 trillion operating profit.
High-end market
Analysts noted that although the Korean giant is reducing the production of simple Dram and Nand chips, it will in all likelihood increase that of more advanced memory semiconductors to meet the demand of the high-end market. Given the differentiation of its portfolio of products ranging from household appliances, to TVs, to smartphones, the title has held since the beginning of the year lost in the bag only 0.31%.