Samsung reports 95% drop in profit, but expects global demand to recover in second half of the year

Samsung Electronics posted a second-quarter nett driblet Thursday arsenic anemic request for representation chips persists.

Here are Samsung's second-quarter results versus estimates:

Samsung reported income slipped 22% from a twelvemonth ago, portion operating nett plunged 95%. Earlier this month, Samsung estimated second-quarter revenue to beryllium 60 trillion Korean won and operating nett to beryllium 600 cardinal Korean won.

Samsung is the world's largest shaper of dynamic random-access representation chips, which are recovered successful user devices specified arsenic smartphones and computers.

Global shipments of smartphones are expected to decline 3.2% successful 2023 to 1.17 cardinal units, according to planetary marketplace quality steadfast International Data Corporation. The steadfast lowered its forecast from February, driven by factors specified arsenic "a weaker economical outlook" and "ongoing inflation."

Smartphone and PC manufacturers are grappling with excess inventories of representation chips aft stockpiling to conscionable accrued request for user devices during the pandemic. Inflation has led to consumers cutting backmost connected purchases of these goods, driving down prices for representation chips.

"Our conversations with channels, proviso concatenation partners, and large OEMs each constituent to betterment being pushed further retired and a weaker 2nd fractional of the year," said Nabila Popal, IDC's probe director.

"Consumer request is recovering overmuch slower than expected successful each regions, including China."

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