What you need to know
- Samsung boasts that the Galaxy S23 series has surpassed its predecessor in global sales.
- The company also announced financial earnings guidance for the first quarter of 2023.
- Samsung’s guidance suggests a sharp drop in profits and lower sales.
It’s only been a few months since Samsung launched the Galaxy S23 series, but the company hasn’t been shy about boasting sales success with its flagships. , suggesting that there are some big problems for the company.
Samsung Releases Earnings Guidance (opens in new tab) Thursday’s Q1 2023 forecast wasn’t a good picture for the company. The company reported revenue of an estimated KRW 63 trillion, down about 19% from KRW 77.78 trillion it earned in the same quarter last year.
However, the most concerning part of the guidance was operating profit, which was estimated at KRW 600 billion (USD 450 million). This represents a more than 95% plunge in his operating profit compared to the first quarter of 2022, and is also the lowest profit recorded in 14 years.
Samsung, like many other companies, is still dealing with the impact of ongoing semiconductor shortages, which is the biggest cause of its poor guidance. Other semiconductor makers like Qualcomm are highlighting rising inventory levels as demand for new chips from customers has slowed.
As a result of plummeting profits and to combat the ongoing economic struggle affecting semiconductor sales, Samsung has said it will cut semiconductor production. “We are curtailing memory chip production at a meaningful level, especially for products with secured supply,” the company said in a statement (via Reuters).
However, this comes at a time when the company boasted improving sales in the global market for its latest flagship smartphone, and this may have helped the company continue to flirt during the quarter. , Middle East and Latin America, the sales of the Galaxy S23 series are 1.7 times higher than the Galaxy S22 during the same period (via Yonhap News Agency).
Rising sales of Samsung’s flagship product shouldn’t be too surprising. The company has announced a trio with the latest Snapdragon 8 Gen 2 for Galaxy. This is a powerful and efficient SoC that powers mobile phones around the world. Fans are apparently flocking to get his hands on his Snapdragon-powered Galaxy, given that Samsung has overcome his underperforming Exynos chip.
And as in previous years, the top-end model seems to be the most popular, with the Galaxy S23 Ultra accounting for 60% of sales.
Samsung is set to release its full quarterly results for the January-March period later this month.
