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Samsung sticks fingers in ears for worse profits in 14 years

by on25 April 2023

Shortfall in memory

Samsung is expected to report its worst profit in 14 years laster this week due to falling prices for memory chips -- the company's biggest business -- and weak demand.

The South Korean technology giant warned earlier this month that it would post operating profit of $449 million for the first quarter. If Samsung reports this number, it would be the company's lowest profit since the first quarter of 2009.

Samsung releases preliminary earnings guidance, but does not give detailed figures. It reports its full first quarter earnings on Thursday.

During the height of the pandemic, demand for consumer electronics was high, as people stayed home. Electronics companies piled up chips to go into these products. But buyers are now cutting back on purchases of these goods due to inflation and macroeconomic concerns, leading to somewhat of a memory chip glut.


Last modified on 25 April 2023
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