Samsungcannot stop the blood loss. Despite a 95 percent profit drop, the company’s reputation has once again been saved by solid performance results in the mobile space. Recently, Galaxy Z Flip 5, Galaxy Z Fold 5 can be folded smart phoneIntroducing the new Galaxy Watch 6 series Samsung, however, experienced a major decline in its financial statements. What is the main reason for Samsung’s decline this year? What has changed in Samsung after this decline?
In addition to the 96 percent drop in profits in the previous quarter, the company said it saw a 95 percent drop this quarter as well, due to weak demand for memory chips.
Samsung’s Financial Situation Worries
In the second quarter of this year Samsung, had an operating profit of only 0.527 billion dollars. This net income represents a 95 percent decrease from the same period a year ago.
Samsung, also saw a 22 percent drop in sales, but said that demand for DRAM chips needed for artificial intelligence dampened the second quarter decline. Although investors are not happy with these results, it is stated that the company expects global demand to recover in the second half of the year.
Samsung’s Mobile and Memory Business
Due to the decline in smartphone shipments in the first quarter “with the effect of Galaxy S23 launch diminishing” of Samsung accounts for some of the income decline. The memory business, on the other hand, posted a slight increase in revenue of $11.53 billion in the second quarter, compared to $10.2 billion in revenue in the first quarter.
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