Samsung’s earnings results for the first quarter of 2023 are quite different compared to the same period last year. The tech giant reported consolidated revenue of 63.75 trillion won ($47.5 billion) and operating income of 0.64 trillion won ($477 million), largely due to its semiconductor business suffering a big loss (according to Reuters ). Samsung’s DS division, which makes semiconductors and displays, reported total revenue of 13.73 trillion South Korean won ($10.2 billion). However, the company posted a loss of 4.58 trillion won ($3.4 billion) in the first quarter.
© File Associated Press – Samsung Electronics Company logo at its office in Seoul, South Korea, April 30, 2019 Wednesday, March 15, 2023 Samsung Electronics announced plans to invest 300 trillion won ($230 billion). Over the next 20 years, as part of South Korea’s ambitious national project to build the world’s largest semiconductor manufacturing base near the capital, Seoul. (AP Photo/Ahn Young-jun, File)
Overall demand for memory products has fallen in recent months, with the unit reporting an operating profit of 0.27 trillion won ($201 million) for the fourth quarter of 2022, amid a slowdown in the economy and declining overall demand. However, the company expects a gradual recovery of demand in the second half of this year as customers run out of inventory.
Despite an overall loss, Samsung’s mobile division performed well in the first quarter. MX and its corporate network business, which includes mobile devices and telecommunications network equipment, had revenue of 31.82 trillion won ($23.7 billion) and operating income of 3.94 trillion won ($2.9 billion). Samsung explained that while overall demand for smartphones is low, the market for premium devices has grown over the years. The segment’s positive growth seems to have been fueled by sales of the Galaxy S23 series, particularly the Galaxy S23 Ultra.
Going forward, the company’s MX business will focus on raising awareness for next-generation devices by supporting sales of the Galaxy S23 and increasing sales of the foldable phone. Samsung is expected to unveil its next foldable device in the second half of this year, possibly launching in August as before.
