Samsung profits will fall to an all-time low of 8 years ago

The latest estimate of Samsung’s quarterly results have shown a significant drop, something that is certainly no more than an appropriate reflection of the reality that prevails in the current market. The drop in demand for smartphones and chips It has been key in this regard, and has given rise to a forecast that would place the South Korean giant on data from 8 years ago.

According to Samsung documentation, Q4 2022 operating profit will drop 69%. As we have said, this would represent the company’s lowest result in the last eight years. Looking at concrete numbers, the giant expects operating profits of 4.3 trillion won, about 3.4 billion dollars to the current change.

If this result is fulfilled, not only will we be facing a significant drop, but Samsung will also have been unable to meet the downward forecasts of numerous analysts, with all that this could entail. for the confidence of investors in the stock marketand for the value of the shares of the South Korean company, which could suffer a considerable drop.

In terms of revenue, Samsung estimates a total of 70 trillion won, which would be about 55,000 million dollars to the current change. This would mean a drop of 8.6% year over year, that is, compared to the results of the same quarter of 2021. It is important to bear in mind that analysts have been quite pessimistic for the first quarter of 2023, so the recovery of the results of the South Korean giant could take until mid-year .

As we anticipated, the drop in demand for smartphones and semiconductors has had a significant impact on that estimate of Samsung’s results. It is not difficult to understand, since in the end the sales of smartphones and chips They are the two most important engines of the South Korean giantand if these fall, it is normal for your income to be strongly affected.

In this sense, the income derived from the sale of DRAM chips dropped 30% globallythe biggest drop since 2008, and sales of Samsung smartphones they fell 7.8% on a year-over-year basis. With the current economic situation and the rising cost of living, it is clear that we are not going to see normalization in the short term, and that the first quarters of 2023 are going to continue to be difficult.

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