In the second quarter of 2023, Samsung’s revenue could drop to $427 million, which is 96% less than the same period last year. In this respect informs Reuters cites Refinitiv analysts.
Analysts also noted that April-June 2023 could be Samsung’s worst quarter in terms of financial performance in the last 14 years. Samsung last reached such a steep peak in the fourth quarter of 2008, when the company reported an operating loss of 740 billion won (about $560 million at the 6 July 2023 exchange rate).
Refinitiv attributed the drop in Samsung’s profits to the crisis in the semiconductor market, where the South Korean tech giant has traditionally earned the most from the manufacture and sale of memory chips. Prices for such products have been falling for more than a quarter. Analysts estimate that Samsung’s memory unit lost 3-4 trillion won in the second quarter.
Reuters writes that the memory market will continue to decline in the third quarter of 2023. Samsung will try to compensate for the failure in this business segment by increasing the production of special chips for the operation of neural networks.
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