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Samsung Sees Q4 Profit Plunge 69% As Pandemic Correction And Macro Headwinds Weigh

Benzinga · 01/06/2023 08:27
  • Samsung Electronics Co, Ltd (OTC: SSNLF) shared the guidance for its fourth quarter.
  • The ace chipmaker expects consolidated sales of approximately 70 trillion Korean won, down 8.6% year-on-year.
  • Samsung saw a consolidated operating profit of approximately 4.3 trillion Korean won.
  • Also Read: Samsung's Consumer-Products Chief And Analysts Expect Demand Headwinds To Improve From 2H 2023
  • Samsung expects its fourth-quarter profit to plunge as its mainstay memory chip and smartphone businesses face a sharp pullback in demand after pandemic highs, the Wall Street Journal reports.
  • Samsung's forecast signals larger-than-expected order pullbacks and price drops in the memory business, combined with falling sales of smartphones and home appliances. 
  • The possibility of a global recession and macroeconomic uncertainties weighed on its key businesses.
  • Samsung is a major component supplier to companies like Apple Inc (NASDAQ: AAPL), the top seller of smartphones and TVs, and a significant player in many other areas of consumer electronics.
  • Samsung is the largest producer of two major types of memory chips, DRAM, which enables devices to multitask, and NAND flash, which provide devices with storage capacity.
  • In the fourth quarter, prices of Samsung's DRAM and NAND flash will likely fall by nearly 30% quarter-on-quarter, according to Goldman Sachs.
  • Photo via Wikimedia Commons