The top smartphone maker in the world, Samsung, will announce financial figures for the last quarter of 2022 that are significantly below expectations.
Nothing will change as a result of the year end festivities. For Christmas, the company expected to sell a lot of high-end smartphones, but the public wasn’t so enthusiastic. Samsung’s results are poor because it is not exempt from the global economic crisis. Even so, the group’s performance is at its lowest point in eight years.
The largest industries are being impacted, and Samsung is no exception. Sometimes, the numbers are astonishing. Apple, the most valuable firm in the world, is now only worth $2 trillion. After losing 33% of its value in a single year. The Korean giant’s economists claim that the rise in interest rates and the cost of living are to blame for the weak technology sector sales. Consumers stop investing in brand new electronic devices when it comes to prioritizing their purchases.
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Since 2014, Samsung hasn’t generated as little profit
We are not far from a disaster, according to the quarterly financial data displayed on the Samsung website. The fourth quarter of 2022’s profits totals around €3.2 billion. They were €10.7 billion in the fourth quarter of 2021. Profits have consequently decreased by 70% between one year and the next. In order to find such low profits, we must look back to 2014.
Samsung blames the weaker than expected demand for smartphones and semiconductor components for these incredibly disappointing statistics. According to the company, weaker demand from server clients, data centers, and phone manufacturers caused chip sales to decline as external economic circumstances are anticipated to remain unclear. All Samsung businesses are experiencing a tough time, but processors and smartphones in particular, claims an analyst. In a single year, the group’s sales would have decreased by 8.6%. We will have to wait to see if the situation will get better or worse in 2023.