It continues to be a troublesome time for tech firms — even the giants.
Samsung Electronics Co.’s earnings are formally down 95% for Q1 2023; the corporate noticed 14.12 trillion Korean gained ($10.7 billion) in revenue for Q1 2022 and simply 640 billion gained ($478.55 million) this previous quarter, Ars Technica reported.
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A serious contributor to the stoop? The corporate’s reminiscence chip division posted a document $3.4 billion loss amid the $160 billion dip within the world reminiscence business, per Bloomberg. Based on the outlet, the corporate’s semiconductor division is often its largest, and the staggering drop in Q1 was “unprecedented.”
The corporate plans to cut back its reminiscence manufacturing by a “significant” quantity to safeguard towards an roughly 70% fall in costs over the previous 9 months, per The Verge. However, in what Bloomberg calls an “uncommon transfer,” Samsung does not intend to slash its funding in reminiscence chips in a bid to take care of its long-term competitiveness.
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Samsung continues to be banking on the semiconductor business, and its outlook on PC and telephone demand can be optimistic. “Within the second half, the smartphone market is predicted to extend in each quantity and worth amid indicators of a worldwide financial restoration,” it stated in a assertion.