Samsung Profit could Drop 92 Percent due to Big fall in Chip Market Amid Economic Slowdown

South Korea’s Samsung Electronics may see a 92 percent drop in profit in the first quarter. This could be the company’s lowest profit in the last 14 years. The economic slowdown has had a major impact on the company. Samsung has suffered more due to reduced purchases of memory chips by data centers and computer makers. The chip division of Samsung, the world’s largest memory chip maker, may post a quarterly loss of three lakh crore KRW (about Rs 18,903 crore).

The launch of the company’s new flagship smartphone is expected to support its mobile division’s profits. However, the coming quarters could be challenging for Samsung due to falling memory chip prices and rising inventories. The company is likely to announce its first quarter results on Friday. In the quarter ended March, according to estimates polled by 27 analysts from Refinitiv Samsung Its operating profit may decline to 1.08 lakh crore KRW (about Rs 6,769 crore). This would be the lowest profit since 2009 when it reported a profit of 598 billion KRW (about Rs 3,700 crore) in the quarter.

Prices for DRAM memory chips used in smartphones, PCs and servers have dropped by nearly 20 percent in the last quarter. Apart from this, the prices of NAND flash chips used in data storage have come down by up to 15 percent. Smartphone and personal computer makers have cut purchases of new chips and are using inventories as demand for tech devices weakens due to rising inflation.

Chip makers have also stopped fresh investments due to rising interest rates. These include companies such as Micron Technology and SK Hynix. These companies are expected to remain in recession in the chip market till the second half of the current year. However, Samsung has not changed its investment plan. Analysts say that the company is using this situation to increase its market share and take advantage of the subsequent pick-up in demand. samsung new in february smart fone On the first day of pre-booking of Galaxy S23 in India, orders worth about Rs 1,400 crore were received. The pre-booking of Samsung Galaxy S23 was almost double that of the Galaxy S22, the previous version of this smartphone.
<!–

–>