On Friday, Samsung Electronics Co. said that its quarterly profit fell by two-thirds to an eight-year low as a weaker global economy hurt memory chip prices and cut demand for electronics.
The poor profit estimate of the largest manufacturer of memory chips, smartphones, and televisions in the world sets a low bar for the quarterly results of other technology companies.
Samsung stated in a short preliminary earnings statement that quarterly revenue likely decreased by 9% compared to the same period a year earlier, reaching 70 trillion won.
Asia's fourth-biggest listed company by market value will release detailed earnings on Jan. 31.
Samsung is a South Korean multinational corporation that is known for its wide range of products, including memory chips. Memory chips, also known as memory modules, are small electronic devices that are used to store data in computers, smartphones, and other electronic devices. Memory chips are typically made from silicon and are classified based on their type, capacity, and speed.
Samsung is one of the leading manufacturers of memory chips, and its products are used in a wide range of devices, including computers, smartphones, tablets, and other consumer electronics. Samsung offers a variety of memory chips, including DRAM (dynamic random-access memory), SRAM (static random-access memory), and NAND flash memory, which is used in storage devices such as solid-state drives (SSDs) and memory cards.
Samsung's memory chips are known for their high quality and reliability, and the company has a reputation for being at the forefront of technological innovation in the memory chip market. The price of memory chips fell in the mid-20%. Samsung is also known for its strong research and development capabilities, and it frequently introduces new products and technologies that are designed to meet the evolving needs of its customers.
There are a lot of reasons contributing to Samsung's horrible quarter. Including the rising global interest rates and increased cost of living. This has directly affected Samsung as most of the electronics are not being sold as predicted, including the foldable phone. semiconductors that Samsung is well known for also took quite a hit.
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