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

Samsung has shared its profit forecast for the last three months of 2022. The company estimated its turnover was about 69 percent less than the same period in 2021. The South Korean tech giant attributes the decline to a weakening global economy.

Samsung profit declined in the last quarter to about 4.3 trillion won, which converts 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. It 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 saw the company’s first profit in nearly three years. recorded a drop in profit. Analysts expect Samsung’s earnings to fall 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 does so on January 31.

Samsung blames 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, among other things, the company writes in a statement, according to Reuters. With the equivalent of 52.3 billion euros, Samsung had 9 percent less turnover than last year.