Samsung’s profit has collapsed by 95 percent

Samsung recorded a record drop in operating profit for the first quarter of 2023. This is reported by the CNBC channel.

The report of the Korean corporation says that operating profit for the first three months of the year collapsed to 640 billion won, or about 38 billion rubles. A year earlier, the company’s operating income was 14.12 trillion won, or about 838 billion rubles, a drop of 95 percent. It is noted that this indicator is the weakest quarter of Samsung since 2009.

The record drop in profits was attributed to the efficiency of the division that produces semiconductor equipment – processors for smartphones, computers and other gadgets. So, in the first quarter of the year, Samsung reported a loss of 4.58 trillion won for the division – for the same period last year, the company earned 8.45 trillion won.

CNBC explained that during the pandemic, there was a shortage of semiconductor equipment, and Samsung partners bought chips in huge quantities, building up stocks. At the moment, gadget manufacturers are struggling with excess inventory of components, as demand for smartphones and other equipment has fallen against the backdrop of inflation.

Samsung expects more positive results for the second half of the year. “Demand is expected to gradually recover in the second half of the year amid forecasts of a decrease in customer inventory levels,” the corporation said in a report.

Earlier it became known that Samsung will return proprietary Exynos processors to its flagship smartphones. Most likely, Exynos chips will receive devices of the Galaxy S24 series.