Samsung has released its preliminary Q3 results, which show a profit decline that was less severe than expected, standing at 78%.
Samsung’s Profit of 2.4 Trillion
Samsung reported an operating profit of 2.4 trillion won from July to September, a significant decrease from the 10.85 trillion won recorded during the same period in 2023.
The primary factors contributing to this annual downturn were a slowing global economy and a significant decrease in chip demand.
Q3 Profit Exceeded
Nonetheless, Samsung’s Q3 profit exceeded expectations, despite being significantly lower than the 640 billion won recorded in the first quarter (the lowest figure since 2009) and the 670 billion won recorded in the second quarter.
According to the LSEG SmartEstimate, Samsung’s operating profit of 2.4 trillion won exceeded the forecast of 2.1 trillion won.
Following the pandemic-driven surge in chip demand, chip prices fell significantly, posing a significant economic challenge for Samsung, the global leader in memory chip manufacturing.
To offset these losses, Samsung implemented a strategy of prioritizing more profitable and advanced chips, such as DRAM, while reducing production of older legacy chips.
In addition to semiconductor chip manufacturing, Samsung also produces OLED panels for mobile phones and televisions, camera sensors, and a variety of other products.
A comprehensive earnings report for the third quarter of 2023 is expected to be released by the end of this month, providing a complete picture of the company’s current financial situation.
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