Samsung Electronics foresees a drastic decline in profits for the current quarter. So abrupt, that would reach 96% with respect to those achieved during the first quarter of 2022. The first quarter of 2023 will therefore be the one with the lowest profit for Samsung since the first quarter of 2009.
The company, in a statement reflecting its economic forecasts for the first three months of this year, points out that this drop is due to various causes, including the global macroeconomic slowdown, the excess supply of memory chips and a weak demand. Your sales will also decline. According to the group’s calculations, they will do so by around 20% year-on-year, with expected revenues of around 48,000 million dollars.
As they point out from Samsung, the group «is adjusting to reduce its memory output to a significant level“, with the aim of optimizing the lines of operations to ensure that it has a sufficient volume of memory chips for the demand that there will be for them in the future. In addition, they will continue to invest in infrastructure, research and development; with the aim of reinforcing its leadership in technology within the sector.
Last month, the company said it planned to invest about $230 billion to build five new chip manufacturing plants in South Korea. The investment will be spread over the next two decades, in a move that puts Samsung in line with the South Korean government’s intentions to launch a new chip-making hub in Yongin, just outside Seoul.
samsung expects to achieve profits of 450 million dollars between January and March, a figure that is 95.8% lower than that achieved in the same period last year. These are the forecasts they are considering, although the final data will not be known for sure for a month, when Samsung will announce its final results for the first quarter of 2023.
