Samsung, which claimed to produce one out of every three smartphones used in the world until last year, ended the first quarter of 2023 with disappointing results for its shareholders. In addition, due to the appreciation of the Korean won against the dollar and other currencies, a loss exceeding its operating profit emerged.
Samsung earned $47.6 billion in Q1 2023: Net profit of $478 million!
According to a statement made by Samsung, the company achieved consolidated revenue of KRW 63.75 trillion, down 10% from the previous quarter, due to the slowdown in general consumer spending in an uncertain global macroeconomic environment. At the same time, the operating profit was KRW 0.64 trillion.
While the profit in the Device Experience (DX) division increased, the Device Solutions (DS) division faced a decrease in demand. The profit of the DS division also decreased compared to the previous quarter due to weakness in customer demand and a decline in utilization rates in the foundry business.
Samsung Display Corporation (SDC) recorded a quarterly decline in the mobile panel business due to the market contraction, but the large panel business alleviated this loss. However, the DX division managed to turn a profit by focusing on the Galaxy S23 series and premium TVs, which resulted in strong sales.
In addition, the strengthening of the Korean won against the dollar, euro, and other major currencies had a negative impact of approximately KRW 0.7 trillion on the company’s operating profit. Of course, this situation mainly occurred in the component division.
In the second quarter, the DS division is expected to focus on high-capacity server and mobile products, including DDR5 and LPDDR5x, in line with expectations for the gradual recovery of the market and the revival of global demand. They also aim to maintain technological leadership by implementing the 2nm manufacturing process.
It is expected that SDC and the mobile panel business will continue to lead in the high-end market, the large panel business will expand further in the premium market and increase profitability. Additionally, the sales of the Galaxy A series smartphones and new TV models are planned to be increased to prevent further declines.
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