Samsung is preparing to report the worst results since the first quarter of 2009. The situation responds to lower demand for chips, which is driving down prices.
samsung would have this month the worst result of the company since the first quarter of 2009, according to estimates of expected operating profits released by the company. And it is that the technology company anticipated that it expects a result of close to US$450 million for April and explained that this circumstance is mainly due to the prices of memory chips, which represent its largest business and continue to fall. In addition, these semiconductors, of which Samsung is the world’s leading producer, are in weak demand.
This it would add to the 69% losses the company already experienced in the last quarter of 2022, despite the fact that it ended with a positive balance in the year. However, the final result of the company for this quarter will be known this Thursday, when the South Korean technology company will make its figures for the first quarter of 2023 official.
The big problem you face is that, in these first three months of the year, shipments of personal computers fell by 29% with respect to data from 2022, which has caused an accumulation of the product that has precipitated the drop in its prices due to excess stock.
Likewise, a note from the Bolsamania site reflects that inflation and uncertainty The economic crisis has caused the demand for chips to drop after peaking during the pandemic, when, as a result of the mandatory isolation implemented to avoid contagion, people had to stay at home.
A reduction in chip production
At that time, most companies took it upon themselves to stockpile chips for their products, ensuring they could meet demand. That is why the company has already announced the “significant” decrease in chip productions and expects that this decision will drive prices up again as a result of a reduction in inventory.
But, of course, this recovery will take time to happen and the stock of chips is expected to reach very high levels during the second quarter of this year, which, it is expected, will continue to lower their prices in the short term.
This would extend the losses for a few more months, a trend that Samsung is managing to offset thanks to the good performance in the market that the latest mobile devices of the S23 series are having.
Source: Ambito
