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Samsung Electronics’ Q2 Profits at Lowest Level Since 2009

It is known that Samsung Electronics is the global manufacturer of memory chips, cell phones, and TVs. It is expected that the June-quarter profit of the firm will decrease significantly. The lowest profit for any quarter in more than 14 years is expected, with analysts projecting a startling 96% year-on-year decline. Samsung’s cash cow industry is still suffering from a chip oversupply despite efforts to reduce production, which has cost the company a lot of money. According to the Refinitiv SmartEstimate from 27 analysts, 555 billion won is the estimated operating profit for Samsung for the April-June quarter.

This prediction will be Samsung’s lowest profit since the fourth quarter of 2008 if it turns out to be accurate when the firm announced the consolidated operating loss of almost 740 billion won. Samsung had an operating profit of 14.1 trillion won over the same time last year. The semiconductor segment, typically Samsung’s most lucrative industry, is the main reason for this fall. The division is anticipated to post quarterly losses of between 3 trillion and 4 trillion won as a result of the ongoing downturn in memory chip prices and decreases in inventory values.

The third quarter is when analysts expect the market to bottom out, although a meaningful rebound could not happen until 2024. The cost of DRAM chips, which are often used in smartphones, computers, and servers, decreased by between 13 and 18% over the quarter. As a result of buyers holding off on fresh buying chips, supplies were depleted. A profit of 3.3 trillion won is expected from Samsung’s mobile division in operational terms.

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“Although memory prices fell, the drop was not as large as feared,” said Park Kang-ho, an analyst at Daishin Securities. “When full earnings are announced, investors will be looking for third-quarter signals – how much effect the production cut will have in the third quarter, any demand recovery, and whether higher-end DRAM and high bandwidth memory (HBM) products are set to improve (Samsung’s) profit mix.”

Aastha

Aastha is a Author of Samlover.com. With a degree in Engineering with IT, Aastha is deeply immersed in the realm of technology. Specializing in Android and Hardware. She is Passionate about technology at the service of digital entertainment that can be used through any platform. Music, movies and video games have always taken up a good part of his free time, but he doesn't give up outdoor activities, from simple walks to cycling and skiing. He has been producing editorial content for SamLover since 2022 and has run a computer and telephony store for 3 decades.

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