The South Korean tech firm printed its early estimates for the third quarter of 2023 on Wednesday, saying a 78% drop in earnings in comparison with the identical time final 12 months. The outcomes are higher than anticipated.
The world’s largest reminiscence chip and smartphone maker estimated its working revenue fell to 2.4 trillion received (€1.69 billion) in July-September, from 10.85 trillion received a 12 months earlier, in a brief preliminary earnings assertion.
Though such outcomes should not synonymous with excellent news, they’re nonetheless higher than anticipated. The third-quarter revenue drop is smaller than earlier estimates forecasted, because the battered reminiscence chip market exhibits early indicators of recovering from a extreme downturn.
“Though the state of affairs just isn’t nice within the chip enterprise… the decline in reminiscence costs is easing, and additional drops will likely be restricted,” mentioned Ko Yeongmin, an analyst at Daol Funding & Securities.
Although down sharply from final 12 months, Samsung’s third quarter revenue was nicely above the primary quarter’s 640 billion received, the bottom since 2009, and the second quarter’s 670 billion received.
A worldwide financial slowdown and excessive rates of interest dampened demand for many shopper items following a pandemic-driven growth, with shoppers holding off on buying new smartphones or computer systems. This pressured chipmakers to chop manufacturing in an try and stem falling costs.
The detailed earnings launch is due on 31 October, however Samsung already introduced its income doubtless fell 13% from the identical interval a 12 months earlier to 67 trillion received.
The corporate’s cellular enterprise doubtless reported an working revenue of round 3 trillion received, just like final 12 months, in response to a mean of forecasts from 5 analysts. The corporate launched its premium foldable smartphones throughout the quarter, drumming up gross sales regardless of the sluggish world smartphone market.
The third quarter is often sturdy for Samsung’s cellular and show companies given that’s when it launches its flagship smartphones. Demand for show panels from shoppers like Apple rises earlier than the debut of the newest iPhone, which was launched in September.
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