Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Al Mayadeen's correspondent in Gaza: The tower destroyed by the Israeli occupation in Gaza includes media offices, including Al Mayadeen's bureau.
Al Mayadeen's correspondent in Gaza: Four fetuses and three premature babies died at Nasser Medical Complex due to malnutrition
Lebanese Ministry of Health: One person was killed in an Israeli airstrike on a car in the town of Burj Qalawieh, south Lebanon.
Al Mayadeen correspondent: The first ship of the Maghreb fleet delivering aid to break the siege on Gaza departs from the port of Gammarth in Tunisia.
Channel 12: Airspace closed at Ramon Airport due to fears of drone infiltration
IOF Spokesperson: Sirens sounded over an aircraft infiltration in the Bir Ora area, and details are being examined
Drone infiltration sirens sound north of the Gulf of Aqaba
Al Mayadeen's correspondent in Gaza: The Israeli occupation carried out five extremely violent raids on the western areas of Gaza City
Al Mayadeen's correspondent in Gaza: The Israeli occupation carried out major bombings in the Gaza Strip, the most violent since October 7
Yemeni Armed Forces spokesperson Brigadier General Yahya Saree: The missile force carried out a major operation using the Palestine 2 ballistic hypersonic missile, hitting several targets in occupied Yafa.

Samsung records worst earnings in 14 years

  • By Al Mayadeen English
  • Source: Agencies
  • 27 Apr 2023 10:42
3 Min Read

Multinational South Korean electronics company Samsung is making record losses amid a global economic slowdown and soaring worldwide inflation.

  • x
  • A logo of Samsung Electronics Co. is seen at the World IT Show 2023 at COEX in Seoul, South Korea, April 21, 2023 (AP)
    A logo of Samsung Electronics Co. is seen at the World IT Show 2023 at COEX in Seoul, South Korea, April 21, 2023. (AP)

The slowdown in consumer electronics purchases and a global microprocessor oversupply, which hurt Samsung Electronics' main memory business, resulted in the company's lowest quarterly profits in 14 years on Thursday.

Samsung, one of the world's largest makers of memory chips and smartphones, said operational profit decreased by 95% from the prior year to 640 billion won ($478.6 million). 

The company's sales decreased 18% to 63.75 trillion won ($47.5 billion) in the first quarter, while its net income declined 86.1% to 1.57 trillion won ($1.17 billion).

"Overall consumer spending slowed amid the uncertain global macroeconomic environment," the company underlined.

According to Samsung, another contributor to its faltering quarter was weakening demand for memory chips, which usually generate nearly 50% of its profits, as well as the decrease in chip prices.

The company's semiconductor segment posted losses of 4.58 trillion won, its first operational deficit since 2009 when the global financial crisis of 2008 was only beginning to fade. 

"Continued price declines and an increased valuation loss... amid weakening sentiment and continued impacts of inventory adjustments by customers caused by prolonged external uncertainties," the firm said was the reason for the faltering profits.

Demand for memory was reportedly "expected to gradually recover" in the third quarter of 2023 "amid projections that customer inventory levels will have declined."

Related News

Alibaba creates new AI chip to challenge Nvidia

US secures 10% ownership in Intel as Trump prods new industrial policy

Loss after loss

Samsung's operational earnings fell by 70% year over year in the fourth quarter, and the first-quarter decline is the company's third straight quarter of margin pressure. 

The company's shares were down 0.3% Thursday morning.

Samsung, as well as its fellow chipmakers in South Korea, have reigned supreme in terms of profits for years as prices for their products soared due to high demand, though the global economic slowdown highly damaged memory sales.

Consumer demand reached record highs throughout the pandemic as they purchased new cellphones and PCs during lockdowns, forcing chip manufacturers to increase output. However, this all came crashing down as lockdowns were lifted and inflation and interest rates went uphill.

Read next: S.Korea to create largest semiconductor cluster: President office

In a rare step for the company, Samsung said earlier in April that it was reducing memory chip output to a "meaningful" level to address the excess. Previously, the company had claimed it would only make minor modifications. 

After forecasting a 96% decline in quarterly operating profit, Samsung Electronics will reduce memory chip output.

Another reduction is expected in the fourth quarter. Operating profit is expected to be 0.6 trillion Korean won in the first quarter, which is 28.2 times lower than the 14.12 trillion Korean won in the first quarter of 2022 and 7.2 times lower than the 4.31 trillion Korean won in the previous quarter.

In the first quarter, Samsung's new flagship Galaxy 23 smartphones helped offset losses in the semiconductor business, but experts anticipate circumstances to deteriorate and potentially result in Samsung's first profit loss since 2008.

  • Chips industry
  • inflation
  • semiconductors
  • Samsung
  • CHIPS act
  • South Korea

Most Read

The damaged building in the Katara neighborhood, Doha, Qatar, September 9, 2025 (Social media)

Hamas delegation survives Israeli assassination attempt in Qatar

  • Politics
  • 9 Sep 2025
Pro-"Israel" conservative Charlie Kirk shot during Utah speech

American far-right activist Charlie Kirk shot dead during Utah speech

  • US & Canada
  • 11 Sep 2025
Uprising against Volker Turk at the Human Rights Council over Gaza.

Uprising against Volker Turk at the Human Rights Council over Gaza

  • Politics
  • 12 Sep 2025
A screengrab from the ad played on Fox News. (X Screengrab)

Fox airs ad warning Trump not to let Netanyahu 'play' him on Gaza

  • US & Canada
  • 11 Sep 2025

Coverage

All
The Ummah's Martyrs

Read Next

All
Australia warned of deadly climate risks in landmark report
Environment

Millions at risk from rising seas, extreme heat in Australia: Report

DPRK leader Kim Jong Un inspects a new weapons factory in undisclosed location, Democratic People's Republic of Korea, August 31, 2025 (AP)
Politics

DPRK defies US, says nuclear state status 'permanently enshrined'

Soldier F faces trial over bloody Sunday killings after 53 years
Miscellaneous

British Soldier F faces trial over Bloody Sunday killings after 53 yrs

Pro-Palestinian protesters demonstrate at the University of Sydney to protest the Israel Hamas war, Wednesday, April 24, 2024 (AP)
Politics

Protest outside ABC decries media silence on Gaza journalist killings

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS