{"id":626542,"date":"2023-04-07T09:49:15","date_gmt":"2023-04-07T14:49:15","guid":{"rendered":"https:\/\/news.sellorbuyhomefast.com\/index.php\/2023\/04\/07\/samsungs-having-a-terrible-financial-year\/"},"modified":"2023-04-07T09:49:15","modified_gmt":"2023-04-07T14:49:15","slug":"samsungs-having-a-terrible-financial-year","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2023\/04\/07\/samsungs-having-a-terrible-financial-year\/","title":{"rendered":"Samsung\u2019s having a terrible financial year"},"content":{"rendered":"<div>\n<p>Samsung Electronics is having another bad quarter according to the company\u2019s own\u00a0<a href=\"https:\/\/news.samsung.com\/global\/samsung-electronics-announces-earnings-guidance-for-first-quarter-2023?utm_source=feedly&#038;utm_medium=direct\">preliminary estimates<\/a>. This time, it\u2019s warning that quarterly operating profit decreased 96 per cent compared to the same period last year, worse than the <a href=\"http:\/\/www.theverge.com\/2023\/1\/6\/23542015\/samsung-q4-2022-earnings-guidance-eight-year-low-profits-revenue-down-lg\">two-thirds plunge<\/a> it suffered the three months prior.\u00a0Not even robust sales of the new Galaxy S23 series could overcome a global plummet in chip demand. <\/p>\n<p>Semiconductor demand has waned since peak covid as everyone splurged on lockdown toys and tools. Now the global economic slowdown has caused consumers to think twice about buying that next gadget resulting in swollen chip inventories for companies like Samsung. And according to my ECON101 professor, prices will fall when there\u2019s more supply than demand putting the hurt on corporate profits. And you\u00a0<a href=\"http:\/\/www.theverge.com\/2022\/8\/12\/23302676\/samsung-heir-presidential-pardon-lee-jae-yong\">can\u2019t get a pardon<\/a>\u00a0for that.<\/p>\n<p>But don\u2019t feel too badly for Samsung. It still made a ton of money. Operating profit is estimated at 600 billion won (about $456 million) \u2014 the lowest it\u2019s been in 14 years,\u00a0<a href=\"https:\/\/www.ft.com\/content\/ae11dbb5-dffc-47c8-8a1b-0c79aec7d891\">reports the\u00a0<em>Financial Times<\/em><\/a>. It\u2019s just not the staggering 14.12 trillion Korean won (about $10.7 billion) raked in last year at this time.<\/p>\n<p>As a result, Samsung says it\u2019s cutting memory chip production to a \u201cmeaningful level\u201d to address the oversupply.\u00a0\u201cWe have cut short-term production plans, but as we project solid demand for the mid-to-long term, we will continue to invest in infrastructure to secure essential cleanrooms and to expand R&#038;D investment to solidify tech leadership,\u201d Samsung said in a statement.<\/p>\n<p>One bright spot for the quarter was the new Galaxy S23 series, with sales of about 11 million units. That\u2019s up by 50 percent compared to its predecessor, according to Hanwha Investment &#038; Securities analyst Kim Kwangjin as <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2023-04-06\/samsung-posts-worst-profit-since-2009-after-chip-downturn\">reported by <em>Bloomberg<\/em><\/a>.<\/p>\n<p>Samsung will issue its final financial statement in a few weeks, but it typically diverges very little, if at all, from preliminary guidance. <\/p>\n<\/div>\n<p><a href=\"https:\/\/www.theverge.com\/2023\/4\/7\/23673851\/samsung\" class=\"button purchase\" rel=\"nofollow noopener\" target=\"_blank\">Read More<\/a><br \/>\n Thomas Ricker<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Samsung Electronics is having another bad quarter according to the company\u2019s own\u00a0preliminary estimates. This time, it\u2019s warning that quarterly operating profit decreased 96 per cent compared to the same period last year, worse than the two-thirds plunge it suffered the three months prior.\u00a0Not even robust sales of the new Galaxy S23 series could overcome a<\/p>\n","protected":false},"author":1,"featured_media":626543,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[54,25265,46],"tags":[],"class_list":{"0":"post-626542","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-having","8":"category-samsungs","9":"category-technology"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/626542","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=626542"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/626542\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/626543"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=626542"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=626542"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=626542"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}