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Samsung forecasts lowest quarterly profits in 8 years

By Cookie Monster - on 8 Jan 2023, 4:00am

Samsung forecasts lowest quarterly profits in 8 years

The Samsung Galaxy S22 lineup.

Samsung is forecasting its worst quarterly profits in 8 years. 

According to the South Korean company, its October - December operating profit is estimated to drop 69% compared to the same period a year ago. If the forecast turns out to be accurate, it would be Samsung's lowest quarterly profit since Q3 2014! 

Samsung says "the decline in fourth-quarter demand was greater than expected" for the memory business, while its mobile business is affected by lower sales and revenue caused by "prolonged macroeconomic issues". 

BNK Investment & Securities analyst Lee Min-hee claims Samsung's high-end phones such as the foldable phons did not sell as well. Korean publication fnnews reported last month that Samsung failed to hit its sales target for the Galaxy S22 Series and Galaxy Z Flip4/Fold4. Moreover, Samsung Display's profits likely took a hit due to the production disruption of Apple iPhone 14 Pro models at the biggest iPhone factory in China.

Samsung's profits for the current quarter are likely to decline as memory chip prices continue to drop due to lower demand. Higher costs of living, rising interest rates and the uncertain global economy continue to dampen demand for consumer electronics products.

Source: Reuters

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