News
Samsung’s Semiconductor Business Expected to Post Biggest Losses in Q3
Samsung is undoubtedly a top manufacturer and profit-maker in terms of smartphones and smart TVs, thanks to its creative design and extraordinary features. This year seems to be great for the South Korean giant in both its partnership and standalone projects. By supplying OLED panels for the iPhone 15 series, it’s quite a great move from Samsung to join hands with Apple for profit, as Samsung Display is the sole iPhone 15 panel provider. Samsung MX is also said to have a great market this year with their Galaxy Z Fold 5 and Galaxy Z Flip 5, as they have highly anticipated features like the water drop hinge.
Despite its success in gadgets, the firm suffers difficulty in its semiconductor division and strives to overcome it with a decent profit. Samsung Electronics is all set to release preliminary profit data for the third quarter, and industry analysts are keeping a tight eye on the statistics. However, due to an ongoing struggle with a global chip glut, the corporation is expected to post a startling 80% drop compared to the previous year. LSEG surveyed analysts’ claims that operational profit for the September quarter would be 2.3 trillion Korean won ($1.7 billion), a 78.7% year-on-year decrease.
One UI 6.0 Beta Update for Android 14 Rolling Out to Select Samsung Galaxy Devices
LSEG consensus projections state revenue will be 67.8 trillion won, a drop of 11.6%. As per CNBC, these data imply a 78.7% decrease in operational profit and an 11.6% decrease in sales. Samsung Semiconductor is expected to lose more than 3 trillion won ($2.2 billion) in the current quarter. If it turns out to be accurate, this will be the worst loss for Samsung in Q3. For the July–September quarter, economists predicted an operating profit of around 2.1 trillion won ($1.56 billion).
These forecasts are based on data from 19 analysts who are well known for their accuracy. It is important to note that Samsung made an operational profit of 10.85 trillion won over the same time the previous year. The main cause of this turnaround is the company’s semiconductor segment, which has previously been their financial core. Now it is anticipated to disclose quarterly losses ranging from 3 trillion to 4 trillion won. However, the firm will see quarter-on-quarter growth in Q3 2023 through its recently launched smartphones.