Explorer

Samsung's Quarterly Profit Forecast To Hit 6-Year Low Amid Falling Smartphone Demand

Samsung's quarterly profit is set to fall 58 per cent to its lowest in six years in the wake of the global economic slowdown.

Samsung's quarterly profit is set to fall 58 per cent to its lowest in six years in the wake of the global economic slowdown that has resulted in trimmed-down demand for electronic devices and eclipses the outlook for the memory chip industry, the media has reported.

Smartphone consumers and businesses both have cut down spending and investment in the wake of the high inflation and growing interest rates, smartphone makers and other clients held back memory chip orders, while smartphones sold for less as demand suffered, according to analysts, says a report by news agency Reuters.

Additionally, NAND and DRAM prices have also declined sharply in the fourth quarter due to a lack of demand for the products they eventually go into, such as PCs.

Operating profit for Asia's fourth most valuable listed company likely fell to KRW 5.9 trillion (roughly Rs. 40,000 crore) in the October-December quarter, according to a Refinitiv SmartEstimate from 21 analysts, the Reuters report added.

"The main reason for the performance...is a sharp drop in demand. Both shipments and prices of chips and smartphones are expected to fall short of previous expectations," Kim Roko, Analyst at Hana Financial Investment, was quoted as saying.

According to analysts at Macquarie Research, Samsung is forecast to report fourth-quarter operating profit of 5.5 trillion won, which would be the lowest since the third quarter of 2016. As per Daiwa Capital Markets analysts, operating profit will stand at at 4.9 trillion won, a 65 per cent year-on-year plunge and would be the lowest since the fourth quarter of 2015, says a report by CNBC.

To recall, Samsung recently licensed 5G technology from Chinese tech behemoth Huawei, which was forced to launch its smartphones with the proprietary HarmonyOS operating system after it was banned from accessing the US supply chain due to sanctions imposed on it. Oppo has also licensed key technologies from Huawei. 

View More
Advertisement
Advertisement
25°C
New Delhi
Rain: 100mm
Humidity: 97%
Wind: WNW 47km/h
See Today's Weather
powered by
Accu Weather
Advertisement

Top Headlines

J&K CM Omar Says People Found Their Voice Through Special Status Resolution; BJP Threatens To Run ‘Parallel Govt’
J&K CM Omar Says People Found Their Voice Through Special Status Resolution; BJP Threatens To Run ‘Parallel Govt’
Maharashtra Polls: PM Modi’s 'Ek Hai, Toh Safe Hai' Remark After Adityanath's 'Batenge, Katenge' Slogan — WATCH
WATCH: PM Modi’s 'Ek Hai, Toh Safe Hai' Remark After Adityanath's 'Batenge, Katenge' Slogan
IND vs SA 1st T20I Live Score: Miller & Klaasen Revive South Africa's Innings But India Still On Top
IND vs SA 1st T20I Live Score: Miller & Klaasen Revive South Africa's Innings But India Still On Top
J&K: Bodies Of 2 Village Defence Guards Recovered In Kishtwar, Protests Erupt As Search For Terrorists Underway
J&K: Bodies Of 2 Village Defence Guards Recovered In Kishtwar, Protests Erupt As Search For Terrorists Underway
Advertisement
ABP Premium

Videos

Marshals Remove BJP Legislators from J&K Assembly Amidst Growing TensionsAnchor Silences NC Spokesperson Over Article 370 and 35A Debate | ABP NewsJ&K Assembly: Dramatic Images Show BJP and Ruling Party MLAs in Heated ScuffleClash in J&K Assembly: Cameras Capture Khursheed Ahmad Sheikh’s Scuffle with BJP MLAs

Photo Gallery

Embed widget