Samsung Electronics says first-quarter profit likely fell 96% as chip glut cuts prices
A man walks past an advertisement for the Samsung Galaxy Z Flip4 smartphone at the company̵[ads1]7;s Seocho building in Seoul on January 31, 2023.
Jung Yeon-je | Afp | Getty Images
Samsung Electronics reported a likely 96% drop in first-quarter operating profit on Friday, worse than analysts had predicted, as a chip glut worsened and buyers slowed purchases amid a global economic slowdown.
The world’s largest memory chip and TV maker estimated operating profit fell to 600 billion won ($455.50 million) in January-March, from 14.12 trillion won a year earlier, in a brief preliminary earnings statement.
“Memory demand fell sharply … due to the macroeconomic situation and lowering customer buying sentiment, as many customers continue to adjust inventory for economic purposes,” the company said in a statement.
The profit fell short of a Refinitiv SmartEstimate of 873 billion won, weighted against analysts who are more consistently accurate. Several estimates were revised down earlier this week.
Revenue likely fell 19% from the same period a year earlier to 63 trillion won, Samsung said.
The company is due to release detailed earnings, including divisional breakdowns, later this month.
