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HomeTechnologyAs Losses at the Semiconductor Sector Mount, Samsung is Anticipated to Disclose...

As Losses at the Semiconductor Sector Mount, Samsung is Anticipated to Disclose an 80% Profit Decline

Analyst projections predict an almost 80% decline in Samsung Electronics’ earnings in the third quarter as the company’s largest profit-generating sector, semiconductors, remains under pressure.

On Wednesday, the world-renowned South Korean tech company will provide earnings guidance. 2.3 trillion Korean won ($1.7 billion) operational profit, down 78.7% year over year, is what analysts surveyed by LSEG estimate for the September quarter. According to LSEG consensus projections, revenue will come in at 67.8 trillion won, a decline of 11.6%.

The majority of memory chips produced globally, from servers to laptops, are produced by Samsung. Additionally, it dominates the smartphone market globally.

Analyst predictions indicate that Samsung’s semiconductor unit, which is traditionally the company’s cash cow, will report a loss of more than 3 trillion won for the third quarter as a result of ongoing challenges.

Due to an excess and low demand for finished goods like smartphones and laptops, memory chip prices have plummeted significantly this year.

Samsung’s earnings have been severely impacted by this. Although this does not appear to be happening as quickly as many had hoped, the business predicted a pick-up in chip demand in the second half of the year in its most recent financial reports in July.

Although the impact is unlikely to be felt in the third-quarter results, the tech giant has reduced manufacturing in an effort to support pricing.

Source (CNBC)

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