Despite 80% drop, Samsung likely to gain $2.22 billion profit in Q3 2023

Samsung is likely to face a drop of 80% YoY in its profit in Q3 2023 due to the global chip glut. Despite a huge loss, the South Korean tech giant is capable of gaining good revenue – thanks to the amazing foldable sales in the smartphone market.

The information is arriving from the Reuters site which quotes that the company is ready to announce its third-quarter preliminary earnings outcomes this Wednesday. While Samsung is receiving a declination of 80%, it is still expected to earn an operating profit of around $2.2 billion (3 trillion won) in Q3 2023.

Consequently, the profit is quite low compared to last year (September 2022) when the company made a profit of 10.85 trillion won. A major reason behind this loss is that the rock-bottom chip prices did not recover as fast as predicted.

Meanwhile, a cutback on chip production also made a negative impact on the economics of sales. It is worth mentioning that there is still a strong demand for memory chips used in artificial intelligence such as high bandwidth memory (HBM). However, Samsung is behind rival SK Hynix in developing such chips and securing clients.

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(Via)