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Last updated: July 7th, 2023 at 06:11 UTC+02:00

Samsung has been going through some tough times. Over the past year, its semiconductor chip business has seen a massive downturn amid global economic woes. Since most of the companys profits usually come from its semiconductor chips business, it has been hit hard. The South Korean firm unveiled its earnings estimate for Q2 2023, and things appear worrying.

Samsung expects Q2 2023 sales to be around KRW 60 trillion (around $45.91 billion), while its operating profit would be around a paltry KRW 0.6 trillion (around $459 million). Thats a whopping 95.74% drop in profit compared to the previous year (Q2 2022), while sales dropped 22.28% from a year ago. This is the second consecutive quarter where the company is reporting worrying figures. Even its Q1 2023 profits dropped 96% compared to Q1 2022.

While the company hasnt revealed its complete and final figures, analysts claim that the poor performance is attributed to the semiconductor division (Samsung Device Solutions). This division is expected to have made losses to the tune of up to KRW 4 trillion ($3.06 billion). Clients arent buying enough memory chips for their cloud servers and high-performance computing machines. Samsung said earlier this year it expects this phase to continue throughout the year.

The companys smartphone division seems to have performed solidly, though. The Galaxy S23 series has been selling really well worldwide. In some countries, the companys high-end phones unveiled earlier this year sold 1.6-1.7x more than its predecessor during the same one-month period. Even in the home appliances and TV segments, it is seeing tough competition and wants these segments to improve its profits.

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Samsung reveals Q2 2023 earnings, profit nosedives to 14-year low - SamMobile - Samsung news