During the second quarter of 2023, Samsung faced a significant revenue decline, with the figure slipping to about $427 million, marking a decrease of roughly 96% compared with the same period a year earlier, according to Reuters citing Refinitiv analysts.
Industry observers also suggested that April through June 2023 could represent Samsung’s weakest financial quarter in more than a decade. The last time the company endured such a dramatic downturn was in the fourth quarter of 2008, when Samsung reported an operating loss of 740 billion won, roughly $560 million based on the exchange rate of July 6, 2023.
Analysts linked the profit drop to ongoing turmoil in the semiconductor sector, a core business for Samsung, renowned for its memory chips. Prices for these products have trended downward for several consecutive quarters, and forecasts indicate that Samsung’s memory division may have written down 3 to 4 trillion won in the second quarter alone.
Forecasts reported by Reuters suggest the memory market is likely to remain weak into the third quarter of 2023. In response, Samsung reportedly planned to offset weakness in its memory segment by expanding the production of specialized chips intended to support neural network workloads.
In related discussions about artificial intelligence and technology, OpenAI has been the topic of ongoing dialogue regarding the timing and potential implications of AI advancements that could reshape various sectors and applications.