Samsung’s Q1 earnings forecast paints a bleak picture that is worse than anything seen in the previous ten years. The estimated sales amount is over $48 billion, which is a 10% QoQ and nearly 20% YoY decline.
Operating profit is anticipated to be a pitiful $455 million, a staggering 95% decline from the $11 billion profit made during the same period last year and a staggering six-fold drop from the prior quarter.
Due of the continually low demand, Samsung said that it will dramatically curtail memory chip output. According to Samsung, this division’s poor performance has contributed to the company’s lowest earnings results since 2009.
At home, Samsung Group, a “chaebol,” is the biggest family-owned business in South Korea. The corporation contributes more than 20% of the nation’s domestic GDP, escalating the local economy’s problems.
Profits fell by almost 70% in Q4 2022, the second consecutive quarter of severe drop. It is clear that the company’s successful streak in memory chips has come to an end, and it must look into other options if it hopes to return to profitability. Samsung had previously blamed this decline on the crisis in Ukraine and inflation.
Remember that this report is only intended to provide guidance; real findings have not yet been released. It’s possible that the actual outcomes will be a little better than the pessimistic forecasts, but for the moment it is obvious that Samsung’s situation is not favourable.