Samsung’s Q1 2023 Financial Report: Samsung has released its financial report for Q1 2023 and the details on the report are not quite what was expected. According to the report, the company sold more phones but overall the profits made by the company decreased to a level that has not been seen in the past 15 years.
According to the report, Samsung has sold more phones in the first quarter of 2023. The money made by the company from phone sales was pushed by the Samsung Galaxy S23 series, especially the massive sales of the Galaxy S23 Ultra. However, other sectors like chipset display, etc. are not doing well in Samsung.
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The Q1 2023 financial report released by Samsung showed the operating profit between January and March went down 18% YoY. The profit dropped by 95% – from KRW 14.12 trillion to KRW 0.64 trillion.
Although phone sales increased by 22% on a quarterly basis, the network business did not. Samsung’s network business is facing steep opposition from competition in North America and South West Asia and this has led to a slight decrease in profit for the company.
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Samsung also confirmed that there is a decline in the memory and semiconductor business. This decline is due to weak demand and inventory adjustments from customers. Samsung’s display business also did not do very well as the market for mobile panels contracted, while the large panel business slightly narrowed the losses.
There are no options for display panels with the likes of BOE and TCL making really nice displays. In fact, some of the premium phones like the Xiaomi 13 Ultra used a TCL display panel instead of panels from Samsung. There was also a negative impact, primarily in the component business, due to the strength of the Korean won against the US dollar.
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Samsung is expecting global demand to rebound in the second half of the year, which would assist its recovery. However, current market trends are expected to continue in the following quarter, ending in June.
Going forward, Samsung’s DS Division will focus on boosting the gate-all-around (GAA) based 2nm process while meeting the demand for DDR RAM, LPDDR5X RAM, and other high-end products.
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The launch and sale of the Samsung Galaxy Tab 9 series, Galaxy Z Fold 5, and Z Flip 5 later this year might help improve the profit for the company. Samsung is also working on powering its future flagship phones with the Exynos 2400 chipset which will save the company production cost.
Whatever the case might be, Samsung will be working on cutting costs, making more quality and efficient products, and pushing for more sales in Q2 2023. This seems to be how the company can change the narrative and increase profit in the second quarter of 2023.
