Jul 31, 2023 13:46:00

Samsung again fell by 95% year-on-year, and in addition to the decrease in smartphone shipments, the overstock of memory that continued from the previous quarter became a burden

Samsung reported financial results for the second quarter of 2023 (April 1 to June 30), and it became clear that profits decreased significantly for the second consecutive term. Although operating income decreased by 95% year-on-year due to a decrease in smartphone shipments, Samsung has shown that the smartphone and memory markets will improve in the second half of 2023.

Samsung Electronics Announces Second Quarter 2023 Results – Samsung Global Newsroom

https://news.samsung.com/global/samsung-electronics-announces-second-quarter-2023-results

Samsung's profits are down 95 percent for a second consecutive quarter | Ars Technica

https://arstechnica.com/gadgets/2023/07/samsungs-profits-are-down-95-percent-for-a-second-consecutive-quarter/

According to the announcement, Samsung's sales in the second quarter decreased by 6% from the previous quarter to 60.1 trillion won (about 6.67 trillion yen), and operating profit increased by 5% to 670 billion won (about 74 billion yen). )was. The numbers represent a 22% drop in revenue and a 95% drop in operating profit compared to Q2 2022 . In the same period last year, the operating profit was 14.1 trillion won (about 1.57 trillion yen), which was the highest amount in the company's history, but this period was sluggish mainly due to the decrease in the number of smartphone shipments.

Samsung's mobile experience (MX) business and network business had sales of 25.55 trillion won (about 2.84 trillion yen) and operating profit of 3.4 trillion won (about 340 billion yen) in the second quarter. increase. Samsung said that overall market demand declined from the previous quarter due to continued macroeconomic factors such as high interest rates and inflation, and the effect of the smartphone ' Galaxy S23 series ' released in the first quarter faded, resulting in a decrease in sales compared to the previous quarter. Reported to be. In addition, the continued economic downturn delayed the recovery of the mass market , which affected sales in the second quarter.

On the other hand, the Galaxy S23 series has achieved results that surpass the previous model in both volume and sales, and declared that it would focus on strengthening sales together with the high-end model announced at ' Galaxy Unpacked July 2023 '. Samsung expects the overall smartphone market to turn positive year-on-year in the second half of 2023, although market growth forecasts have been lowered due to the risk of a prolonged global economic recession.

In the memory business, Samsung is focusing on

HBM and DDR5 products in anticipation of the rise of AI applications, resulting in better-than-expected DRAM shipments and improved performance from the previous quarter. On the other hand, in the server business, purchase demand has not recovered, and memory inventory adjustments continue. However, Samsung expects that ``the industry will reduce production and customers' inventory adjustments will settle down,'' and the market will gradually stabilize toward the second half.

In the foundry business, the 3nm process has stabilized, mass production of the third product using a technology called GAA structure is progressing smoothly, and the development of both the second generation 3nm and 2nm processes is progressing smoothly. Going forward, the company will strive to expand its product portfolio by building a foundation for growth by increasing orders from major customers, and by continuing to develop existing mature processes such as 8nm eMRAM and 8-inch technology for automotive applications.