Samsung Electronics recently said its third-quarter operating profit declined by about 31.39%. This decline was seen after the global economic downturn that has been affecting the company’s consumer electronics demands for nearly three years. The major effect was seen in the earnings of the memory chips division.
As per the company’s statement, “demand for consumer products remained weak.” The operating profit for July to September 2022 fell to 10 trillion KRW (approx. USD 7 Billions). Its last year’s value was 15.8 KRW (approx. USD 11 Billion) for the same period, as the company stated.
The company also said that it had seen an increase in sales by 3.79%. As of the second quarter of this year, the South Korean Giant, with other tech companies, benefited greatly from the strong demand for electronic devices.
The company has a strong hold on chip manufacturing too, so they are expecting higher chip demand to get rid of the loss of the 3rd quarter of the year. It has seen a major effect of geopolitics on the memory chip demand, as they became an issue of global geopolitical significance recently.
As we all know, the global economy is facing many challenges such as soaring inflation, rising interest rate, growing debt crisis, and more, so the company also stated that “In 2023, demand is expected to recover to some extent, but macroeconomic uncertainties are likely to persist”.
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