South Korean tech giant SAMSUNG Electronics saw its net profit drop 23.5% year-on-year between July and September. Due to the cyclical slowdown experienced by the semiconductor industry worldwide, it rose to 9.39 trillion won (approximately $6.637 million). By contrast, the company’s net income, located in Suwon (south of Seoul), decreased by 15.4% compared to what was pocketed in April-June, Samsung said today.
The company’s third quarter gross operating profit (EBITDA) was 28.71 trillion won ($20,274 million), which is 7.6% less than in the same period of the previous year. As for operating profit, it fell 31.4% year on year to 10.85 trillion won ($7,675 million), while the company’s third-quarter turnover added 76.78 trillion, up 3.8% from July-September 2021. ($54,308 million). In any case, the company’s net profit for this third quarter, slightly above expectations From South Korean analysts.
branch of semiconductorsthe company’s parent company saw operating profit fall 13.9% year-on-year to 23.02 trillion won ($16,269 million) in the third quarter, and Turnover has shrunk by almost 50% It fell to 5.12 trillion won (US$3.618 million). “Despite the scale of customer inventory adjustments exceeding market expectations,” Samsung said in a statement, “demand for consumer electronics products (using the company’s own chips) continued to weaken.” .
The world’s largest memory manufacturer, like the rest of the world’s semiconductor companies, is now cyclic market coolingtrying to slow inflation, especially after the massive surge in demand during the worst of the pandemic and in the face of the current rise in interest rates globally. Still, looking at the fourth quarter, major mobile phone manufacturers expect higher integrated circuit sales thanks to new product launches.
For 2023, Samsung believes it can “recover later” with increased deployment of new data centers and memory adoption, although “geopolitical uncertainties are likely to dampen demand to some extent in the first half of the year”. DRAM in new computing products.
It was also announced today that he is the heir and thus far the de facto leader of the Samsung group. Lee Jae-yong finally becomes president of Samsung Electronics at a time when the company is looking for “more responsibility and job stability”. His appointment came two years after the death of his father, Lee Kun-hee, whom he replaced as de facto leader since he was crippled until his death six years later following a heart attack in 2014. Lee was also pardoned by the Government in August 2021 after serving more than a year and a half for his role in the alleged South Korean ‘Rasputina’ corruption plot, in August 2021, but he still has a case to face because he currently has two subsidiaries of the Samsung group control over the holding. He is on trial for his controversial merger in 2015, which helped strengthen