The final three months of 2022 are projected to see Samsung‘s profits decline by 69% to their lowest level in eight years.
The largest manufacturer of memory chips, cellphones, and TVs in the world predicted that its operating profit for the time period will drop to about 4.3 trillion South Korean won ($3.4 billion; £2.8 billion).
It occurs as the recession in the world economy affects the cost of memory chips and the demand for electronic devices.
As customers tighten their belts, global technology titans have recently taken a hit.
It was Samsung’s lowest quarterly profit since 2014 and fell short of 5.9 trillion won in investor estimates.
The South Korean business claimed that when clients reduced their supplies of the essential parts for digital gadgets, there was a greater-than-anticipated decline in demand for computer chips.
“For the memory business, the decline in fourth-quarter demand was greater than expected as customers adjusted inventories in their effort to further tighten finances,” Samsung said in the statement.
“Smartphone sales and revenue decreased due to weak demand resulting from prolonged macro issues,” it added.
On January 31, Samsung is expected to release its complete financial statement.
It is the most recent significant technological corporation to discuss the effects of the global economic downturn on its operations.
Sales have also slowed after the pandemic’s spike in demand when consumers at home spent a lot of money online.
Tens of thousands of jobs are being lost throughout the worldwide IT sector as a result of sluggish sales and mounting worries about a recession.
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