Samsung electronics is looking for its worst fourth-quarter profit in eight years amid an intense decline in the global economy/demand for smartphones and the prices of memory chips.
The rise in global interest rates and cost of living has reduced demand for smartphones and electronic devices produced by Samsung and also for the semiconductor it provides to opponents including Apple.
the desolate profit evaluated by the world’s largest, tv maker and memory chip, the front runner global consumer demand, and sets a weak tone for other technology firms’ quarterly reports. Samsung profits are excluding to shrink, again in the current quarter.
The profits are likely to fall 69% to 4.3 trillion won ($3.37 billion) between October _and December. Said by south Korean company on Friday
Lee min-hee said that “all of Samsung’s business had seen hard times, especially chips and mobile phones.”
It was Samsung’s least quarterly profit since the third quarter of 2014 and fell short of the 5.9 trillion won Refintive smart estimate which is weighted more persistently right by analysts toward forecasts.
On January 31, Asia the fourth biggest company on the list will report detailed earnings.
In a short primary earning statement, Samsung said quarterly revenue collapsed by 9% from the same period a year earlier to 70 trillion won.
Samsung said the memory business decrease in the fourth quarter demand is greater than excepted as customers modify the record in their effort to promote finance. Samsung added that in the mobile business. in the fourth quarter profit and revenue decreased due to low demand for smartphones resulting in elongated macroeconomic issues.
BNK investment lee said “memory chip prices fell during the quarter mid-20 % and high-end mobiles such as collapsable sell as well.
Due to client apple`s production delays at the world’s biggest iPhone factory in china during the quarter, its present business was constrained.
Samsung shares closed on Friday surpassing 1.4%, a 1.1% increase in the wider market. Shares of competitor memory chip makers SK Hynix increased by 2.1%.
Three analysts said they excluded Samsung’s profits to descend again in the current quarter.
In October Samsung said that it didn’t expect much change to its 2023 investment.
