At the time of the financial report for the last quarter of 2022, Samsung, the world’s leading smartphone manufacturer, will declare results well below forecasts.
The end of year celebrations will not have changed anything. The brand planned to sell a lot of high-end smartphones for Christmas, but customers did not share this optimism. Samsung is not immune to the international economic context, so its numbers are bad. These are even the worst results in eight years for the group.
The economic slump is affecting the biggest groups, and Samsung is no exception. The numbers are sometimes impressive. The most valuable company in the world, Apple, has lost 33% of its value in one year and is now worth only 2000 billion dollars. According to economists at the Korean giant, the poor sales of the technology sector are due to the increase in interest rates and the cost of living. When setting priorities, consumers give up buying new gadgets electronics.
Samsung hasn’t made so little profit since 2014
The quarterly financial results presented on the Samsung site paint a very gloomy picture; we are not far from disaster. The profits for the fourth quarter of 2022 amount to approximately €3.2 billion. In the last quarter of 2021, they were €10.7 billion. From one year to another, profits therefore fell by 70%. We have to go back to 2014 to find such low profits.
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Samsung attributes these more than disappointing results to a demand for smartphones and electronic components weaker than expected. The company says, “As external economic environments are expected to remain uncertain, chip sales fell due to lower demand from server customers, data centers and phone makers.” According to an analyst, “all Samsung subsidiaries are going through a bad patch, but chips and smartphones in particular”. The group’s sales would have fallen by 8.6% in one year.
Source : Samsung
