While Samsung was showcasing exciting foldables at CES, Samsung Electronics predicted its Q4 operating profit would plummet 69%
Yesterday at CES 2023, CNET reviewed some of Samsung's next-gen folding and sliding device prototypes that are both interesting and exciting, especially the foldable tablet that folds to produce a laptop configuration. This is something that Apple had revealed that they were working on in a 2021 patent update.
While Samsung generated a lot of buzz out of CES 2023, reality hit home this morning. The Korea Herald reports that "Samsung Electronics predicted Friday that its 2022 fourth-quarter operating profit would plummet 69% from a year earlier, as its main semiconductors business faced major headwinds from weakening demand for chips and home appliances amid recession woes.
It was the first time in eight years that Samsung reported a quarterly operating income of less than 5 trillion won, dating to when the company logged 4.06 trillion won in profit for the third quarter of 2014.
"Amid persistent uncertainties over macroeconomics, chip sales plunged due to lower demand from memory chip and smartphone businesses," Samsung officials said.
"(Chip) prices continued to decline by a wider margin than expected following global suppliers' readjustments in inventories. Smartphone and home appliance sales also declined due to decreased consumer spending."
Sales for the October-December period are expected to fall 8.6 percent on-year to 70 trillion won from 76.57 trillion won a year earlier, the company said in a regulatory filing.
The breakdown of financial results is set to be released on Jan. 31. For more, read the full report by The Korea Herald.