- A Samsung report shows KRW 0.67 trillion in operating profit for Q2 2023, which is slightly higher than last quarter, but significantly lower than the KRW 14.1 trillion posted in July 2022.
- The company attributes the drop in revenue mostly to a decline in smartphone shipments, specifically the Galaxy S23 series.
- Samsung expects the overall smartphone market to pick back up in H2 2023 and plans to focus on the newly launched Galaxy Z Flip 5 and Galaxy Z Fold 5 series.
A Samsung report has revealed that the company recorded KRW 0.67 trillion ($527 million) in operating profit for the second quarter of 2023, which is slightly higher than the previous quarter. However, this figure is significantly lower than the KRW 14.1 trillion ($10.8 billion) operating profit recorded in July 2022. The company also reported a consolidated revenue of KRW 60.01 trillion ($47 billion), a 6% decline from the previous quarter and a far cry from last year’s record-breaking KRW 77.2 trillion ($59.4 billion).
The company attributes the drop in revenue mostly to a decline in smartphone shipments, specifically the Galaxy S23 series, and the effect of its launch in Q1 fading. Samsung’s mobile division consolidated revenue has slipped from KRW 31.82 trillion ($23.7 billion) to KRW 25.55 trillion ($20 billion), while its operating profit dropped by $500 billion. The company expects the overall smartphone market to pick back up in the second half of the year, especially in the premium market. Unsurprisingly, Samsung plans to focus its efforts on the newly launched Galaxy Z Flip 5 and Galaxy Z Fold 5 series, with the latter boasting a new hinge that eliminates the gap between the two screen halves.
On the other hand, Samsung’s DS Division or memory business experienced a slight recovery in revenue from KRW 13.73 trillion ($10.2 billion) in Q1 to KRW 14.73 trillion ($11.53 billion). Its operating loss, while still massive at KRW 4.58 trillion ($3.4 billion), is at least a bit smaller at KRW 4.36 trillion ($3.4 billion). Going forward, the company plans to focus on the sale of what it calls “high-value-added products,” such as DDR5 and LPDDR5x components.
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