tech Samsung Electronics Q1 profit likely drops 96% as demand plunges

[Gwendolyn]

SEOUL (Reuters) -Samsung Electronics Co Ltd said on Friday it would make a "meaningful" cut to chip production after flagging a worse-than-expected 96% plunge in quarterly operating profit, as a sharp downturn in the global semiconductor market worsens.

 

Shares in the world's largest memory chip and TV maker rose 3% in early trading, while rival SK Hynix Inc's shares surged 5% as investors welcomed plans to cut production to help preserve pricing power.

 

Samsung estimated its operating profit fell to 600 billion won ($455.5 million) in January-March, from 14.12 trillion won a year earlier, in a short preliminary earnings statement. It was the lowest profit for any quarter in 14 years.

 

"Memory demand dropped sharply... due to the macroeconomic situation and slowing customer purchasing sentiment, as many customers continue to adjust their inventories for financial purposes," the company said in a statement.

 

"We are lowering the production of memory chips by a meaningful level, especially that of products with supply secured," it added, in a reference to those with sufficient inventories.

 

The production cut signal is unusually strong for Samsung, which previously said it would make small adjustments like pauses for refurbishing production lines but not a full-blown cut.

 

https://finance.yahoo.com/news/samsung-elec-q1-profit-likely-234906128.html

[JBJT2786]

I have the s22. There was/is no reason for me to get the s23. I think consumers are becoming more conscious of the fact there's no decent innovation with Apple and Samsung phones and are opting to wait than do the yearly swap these companies are used to ( im including Apple in this cuz I think their profits are down too before the Apple fanboys come in cheering that Apple is better)

[Starshine]

that’s kinda insane? 
tsmc outsold.

[Archetype]

55 minutes ago, JBJT2786 said:

I have the s22. There was/is no reason for me to get the s23. I think consumers are becoming more conscious of the fact there's no decent innovation with Apple and Samsung phones and are opting to wait than do the yearly swap these companies are used to ( im including Apple in this cuz I think their profits are down too before the Apple fanboys come in cheering that Apple is better)

A 96% plunge in quarterly operating profit is significantly more than anyone else tho.  Samsung’s problem is that their chips are not at all competitive with Apple (TSMC) and Qualcomm offerings, and Chinese companies are building similarly competitive chips at a discount.  This is in stark contrast to a few years ago when Samsung was on par with Qualcomm (but still behind Apple) and Chinese chips were only good for low-tier smartphones.  Idk what happened, but they fell behind.

Edited April 7, 2023 by Archetype

[Elusive Chanteuse]

Wasn’t there some short of shortage or chips or something? 

[Revolution]

fad

[Wonderland]

It's giving BB200 second week drop  

[Margaux]

not 96% drop. the taylor swift of smartphones

[Damien M]

This is actually insane. 
 

96%? wow. Did they lose some smartphone contracts or what? That’s a super large drop.

[Squall]

36 minutes ago, Margaux said:

not 96% drop. the taylor swift of smartphones

You really need help with your obsession  

[Breathe On Moi]

but but but iPhones 

[Kern]

not 96% drop. the lady gaga of smartphones

[apasionata]

Good. 🍏 clears any time of the day

[CakeLikeLG]

not 96% drop. the katy perry of smartphones

[Helios]

1 hour ago, the70s said:

not 96% drop. the lady gaga of smartphones

 

1 hour ago, CakeLikeLG said:

not 96% drop. the katy perry of smartphones

 

[RideOrDie]

1 hour ago, CakeLikeLG said:

not 96% drop. the katy perry of smartphones

she doesn't rise up that much to have a 96% drop

[#Beautiful]

3 hours ago, Wonderland said:

It's giving BB200 second week drop  

[Sombre]

Makes sense, they're no longer using their in-house chip for the new Galaxy phones. That and the fact their chips just sucked anyway. 

[Beyonceist]

******* finally, good riddance ugly ass cheap ass terrible ass phones 

[Pheromosa]

they haven't had an exciting phone in years and after moon-gate I don't see it happening 

[Attitude]

I came to drag their shitty appliances, but this is about their flop phones?

 

[Starshine]

23 minutes ago, Attitude said:

I came to drag their shitty appliances, but this is about their flop phones?

 

Their phones (post-2018) are the only good products they have. My parents own their QLED tv, washing machines/dryer, and even the stupid iPad refrigerator. All of them have malfunctioned or had some issue.  This is mostly about their chip business which are also terrible.  

[popmusicisdead]

people have gotten sick of K-electronics, i fear. 

Edited April 8, 2023 by popmusicisdead

[Hallad173]

On 4/7/2023 at 12:07 AM, Margaux said:

not 96% drop. the taylor swift of smartphones

 

23 hours ago, the70s said:

not 96% drop. the lady gaga of smartphones

 

23 hours ago, CakeLikeLG said:

not 96% drop. the katy perry of smartphones

This took me out 

[So.. what now]

Critical and commercial failure