The year 2023 did not start well for Samsung Electronics with them recording a 95% reduction in profit in Q1 2023 compared to Q1 2022. This downward trend continued in Q2 2023 with them recording a profit of KRW 0.67 trillion (~RM 2.37 billion) which was much lower than KRW 14.12 trillion (RM 49.9 billion) recorded in Q2 2022 – once equivalent to a 95% reduction in profits.
The reduction was due to lower smartphone sales in the quarter ending June 30, 2023. Despite the drastic drop in profits, Samsung said reception and sales for the Galaxy S23 series were higher than last year's Galaxy S22 series.
Another factor in this decline in revenue is demand for DRAM and storage chips which is also decreasing from other manufacturers. According to data from Canalys and IDC, smartphone production shrank around 15%, with the United States dropping 24% last quarter.
Although this financial report is not impressive, Samsung is optimistic that the company's earnings will increase again in H2 2023 driven by sales of the newly launched Galaxy Z Fold5 and Galaxy Z Flip5 and the recovery of the global economy.
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BUSINESS & MONEY