Samsung Electronics has released its quarterly guidance, providing a glimpse into its financial performance before the detailed fiscal report is unveiled. Unfortunately, for the second consecutive quarter, the Korean company anticipates a significant decline in profits.
The consolidated figures reveal an operating profit ranging from KRW 0.5 to 0.7 billion (equivalent to approximately $455 million), signifying a staggering decrease of over 95% compared to the corresponding period last year.
Furthermore, both quarterly and yearly sales figures have experienced a downturn. The estimated total revenue for the quarter lies between 59 and 61 trillion KRW, amounting to approximately $46 billion.
Samsung hasn’t seen profits at such a level since Q1 2009 when it recorded KRW 590 billion (roughly $454 million). The complete results will be disclosed on July 27, providing a comprehensive overview of the company’s performance.
It is already anticipated that the company will reduce the production of memory chips due to sluggish demand and geopolitical uncertainties. The previous justification for the conflict in Ukraine no longer holds, indicating that memory chips are no longer the lucrative cash cow they once were.
Samsung now faces the imperative of diversifying its strategy to ensure a continuous flow of revenue. But as mentioned before, we will have to wait for the detailed financial reports with actual results to see how well Samsung is truly doing.
