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Samsung reports 95% drop in profits, attributes to decline in phone shipments

By Cookie Monster - on 29 Jul 2023, 12:16pm

Samsung reports 95% drop in profits, attributes to decline in phone shipments

Samsung is counting on the Galaxy Z Flip5 and Z Fold5 to boost its smartphone shipments for the second half of the year.

Samsung just announced its Q2 2023 earnings report and things did not improve from the previous quarter.

For Q2, the South Korean tech giant reported profits of US$523.5 million, which is a fraction of the US$11.06 billion that it reported a year ago. This represents a 95% decline in year-over-year profits.

If this sounds somewhat familiar, it's because in In Q1 earlier this year, Samsung also reported a 95% decline in year-over-year profits.

Samsung says the drop in profit is mainly due to lower smartphone shipments which are affected by continued macroeconomic factors such as high interest rates and inflation. In addition, the effect of the Galaxy S23 launch in March faded. 

For the second half of the year, the company expects the smartphone market to return to year-on-year growth and is counting on the recently announced Galaxy Z Flip5 and Z Fold5 to boost shipments.

This is not a surprise since Samsung sees foldable phones as "the new standard of smartphones", and its mobile business lead believes the Galaxy Z series will outsell the Galaxy S series in the near future.

 It will also continue to work with partners and roll out tailored sales programs by region to boost sales of the Galaxy S23 series and Galaxy A series.

Another area of focus for Samsung is the tablet and wearable category. While the overall tablet market is expected to remain flat, Samsung projects the high-end segment to increase.

It recently unveiled the Galaxy Tab S9 tablets which are powered by the Qualcomm Snapdragon 8 Gen 2 platform and the world's first tablets with IP68 ratings for water/dust resistance.

Alongside the new Galaxy Tab S9 tablets, Samsung also introduced the Galaxy Watch6 lineup at the recent Galaxy Unpacked event in Korea.

Source: Samsung

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