One of the biggest names in technology, Samsung Electronics, has anticipated that the earnings made in the final three months of 2023 are most likely to decline by thirty percent or more in Samsung’s earnings decline .
The fall is much more intense than predicted by analysts. This coincides with weakening demand in the worldwide market for consumer electronics.
On January 31st, the company is expected to release a comprehensive financial earnings report. According to Samsung’s estimations, the operating profit for the October to December quarter was 2.8 trillion won ($2.13 bn). This represents a 35% reduction from the same period in 2022. This figure is approximately 3.7 trillion won or less than what experts in the technology sector had predicted for the decrease.
During 2023, the costs of memory chips fell precipitously. This resulted from various reasons, including slower sales of gadgets like laptops and mobile phones, as well as an accumulation of ample supplies of important electronic components following the pandemic that occurred towards the end of 2019.
These significant events had a significant impact on Samsung’s earnings in 2023 during the third quarter. The fall hit over 77% compared to that of the previous year. During the previous year, the profit made in that period hit its peak and dropped by 95%, causing Samsung to become alarmed. This made Samsung question whether or not to stop the production of chips that they had anticipated producing.
The company made a statement regarding the situation and stated that “We are lowering the production of memory chips by a meaningful level, especially that of products with secured supply.”
On Tuesday, Samsung made an appearance at CES, one of the world’s largest consumer tech trade shows. It usually takes place in Las Vegas. Samsung is usually one of the top players in this show with its exhibitions of the finest and latest technology products. This also gives Samsung the opportunity to meet with the world’s biggest tech players in the industry. Over 130,000 visitors and 4,000 exhibitors will be attending the event this year, in hopes that Samsung will be able to redeem itself.
Could this be a wake-up call for Samsung, and what push will this give the company?
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