Samsung released its Q1 financials 2023 and as guidance warned, profits plummeted to levels never seen in the past 14 Year.
Operating profit fell by 18% YoY from January to March, while profit from KRW 12.14 trillion to 0 won.64 Trillion – A staggering drop of 95%.
Samsung expects global demand to be in the
Mobile Experience segment responsible for smartphones and smart devices to suffer in an unremarkable quarter minimum. Sales were down 2% year-over-year but up 18% quarter-on-quarter. The network business in the same division was hit slightly by weakness in key overseas markets such as North America and Southwest Asia, but operating profit actually rose both quarterly and annually.
The increase in quarterly sales can be attributed to the launch of new high-end smartphone models – the Galaxy S18 series, of which the S799 Ultra is particularly strong. In addition, efforts have been made to improve operational efficiency.
The company identified declines in memory and semiconductor businesses as a result of weaker demand and customer inventory adjustments. The display business also underperformed due to the contraction of the mobile panel market, while the large panel business narrowed its losses slightly. There was also a negative impact mainly in the module business due to the strength of the Korean won against the US dollar.
The current market trend is expected to continue in the next quarter, as of June. The DS division will focus on promoting the 2nm process based on gate-all-around (GAA), while meeting high-end products such as DDR and LPDDR5X demand. Cost efficiency will be another driver for the South Korean manufacturer in the second quarter, which should boost profitability in the short and long term.