Samsung expects lowest quarterly profit in eight years due to declining demand

Samsung has shared its profit forecast for the last three months of 2022. By its own estimate, the company’s turnover was about 69 percent lower than the same period in 2021. The South Korean tech giant blames the decline on a weakening global economy.

Samsung’s profit fell in the past quarter to approximately 4.3 trillion won, which amounts to 3.2 billion euros. That is a decrease of more than two-thirds compared to the end of 2021, when the company still made a profit of 10.3 billion euros. This was Samsung’s lowest quarterly profit since the third quarter of 2014. writes Reuters.

Samsung’s profit also fell 60 percent compared to the third quarter of 2022, when the company reported its first recorded a decline in profits. Analysts expect Samsung’s profit to decline again in the current quarter. At the end of this month, Samsung will publish its full quarterly figures and further explanations per industry. The company will do this on January 31.

Samsung blamed declining profits and sales on a “weakening global economy,” which has driven down memory prices and reduced demand for electronics. Consumers bought fewer high-end smartphones, such as foldables, the company wrote in a statement, according to Reuters. At 52.3 billion euros, Samsung had 9 percent less turnover than last year.