Samsung’s Earnings Expected to Plunge 80% in Q3 Due to Semiconductor Losses

by | Oct 10, 2023

Samsung's Earnings Expected to Plunge 80% in Q3

Samsung’s earnings are expected to drop by about 80% in the third quarter, according to analysts. The decline is primarily due to losses in the company’s semiconductor business, which is usually a major source of profit. Analysts predict that the semiconductor segment will report a loss of over 3 trillion Korean won ($2.2 billion) for the quarter. 

The decrease in earnings is a result of falling memory chip prices caused by oversupply and low demand for products like smartphones and laptops. Samsung, known as the world’s largest memory chip maker, has been affected by this trend. The company has reduced production to stabilize prices but the impact is unlikely to be seen in the third-quarter results. However, there may be some positive aspects for Samsung, such as potential growth in the display business due to the release of Apple’s iPhone 15 series, as Samsung supplies displays to Apple. 

Additionally, the company’s smartphone unit could experience improved margins due to the launch of high-end foldable phones. Looking ahead, analysts expect a smaller decline in operating profit for the fourth quarter compared to previous quarters, with the hope that the chip division will stabilize. There are also expectations of rising memory prices and opportunities related to AI demand in the future.

Source: www.cnbc.com

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