Losses in the important chip division have salted the soup for Samsung in the past quarter. Consolidated profit fell by 96 percent from April to June to 600 billion won (about 420 million euros), according to the South Korean electronics group. Earnings broadly matched analyst estimates of 555 billion won.
Last year, the company reported earnings of 14.1 trillion won in its preliminary earnings report for the same period. Revenue is expected to be down 22 percent to 60 trillion won ($47 billion) compared to the same period last year, Samsung said in the statement.
According to data provider TrendForce, prices for memory chips have fallen 13 to 18 percent in recent months due to a lack of demand. However, the decline has slowed down recently as Samsung and some competitors had slowed down production.
To compensate, Samsung is trying to capitalize on the hype around ChatGPT & Co and score points with special chips for artificial intelligence (AI). The group also offers itself as a contract manufacturer.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
