Samsung Electronics operating profit is drop by almost 70% in the fourth quarter

The fourth quarter of 2022 was not proven profitable for Samsung because its Quarter on Quarter performance reduced in Q4 from Q3. Recently, the reports of figures for manufacturers’ profit and market shares have come out. According to these reports, Samsung has seen a sudden fall in operating profit which is because of the low demand for semiconductors and home appliances. Let’s take a look at the complete stats. (via- The Korea Herald)

According to an analyst of FnGuide (a market intelligence), in the Q3 of 2022, Samsung’s operating profit saw a huge decline of approximately 69%. Samsung had expected Q4’s profit to be 4.3 trillion KRW, which was nearly 13.87 trillion KRW last year, which means the company has seen a 6.93 trillion KRW loss. Notably, it is the first time after the year 2014 that the company’s operating profit went down less than 5 trillion KRW.

Let us tell you, in the period of Q3 (October to December), it was expected that Samsung’s sales would go down by 8.6% on a yearly basis and fall to 70 trillion KRW, which was 76.57 trillion KRW in the previous year. The operating profit was also expected to be 43.37 trillion KRW by 16% decline from last year’s 51.63 trillion KRW. Its sales were also assumed to increase from 279.6 trillion KRW to 301.77 trillion KRW by 7.9% growth.

Notably, the South Korean firm Samsung’s whole year’s 301.6 trillion KRW. Samsung’s sales last year recorded a total of 280 trillion KRW. The sales have risen by more than 7.93% this year as compared to the previous year. However, this increase is still lower than the whole market’s unanimity of a total of 304.8 trillion KRW.

In that manner, one of Samsung’s officials has stated, “Amid persistent uncertainties over macroeconomics, chip sales plunged due to lower demand from memory chip and smartphone businesses.” He also added, “Prices continued to decline by a wider margin than expected following global suppliers’ readjustments in inventories. Smartphone and home appliance sales also declined due to decreased consumer spending.”