It continues to be a tough time for tech companies — even the giants.
Samsung Electronics Co.’s profits are officially down 95% for Q1 2023; the company saw 14.12 trillion Korean won ($10.7 billion) in profit for Q1 2022 and just 640 billion won ($478.55 million) this past quarter, Ars Technica reported.
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A major contributor to the slump? The company’s memory chip division posted a record $3.4 billion loss amid the $160 billion dip in the global memory industry, per Bloomberg. According to the outlet, the company’s semiconductor division is typically its largest, and the staggering drop in Q1 was “unprecedented.”
The company plans to reduce its memory production by a “meaningful” amount to safeguard against an approximately 70% fall in prices over the past nine months, per The Verge. But, in what Bloomberg calls an “unusual move,” Samsung doesn’t intend to slash its investment in memory chips in a bid to maintain its long-term competitiveness.
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Samsung is still banking on the semiconductor industry, and its outlook on PC and phone demand is also optimistic. “In the second half, the smartphone market is expected to increase in both volume and value amid signs of a global economic recovery,” it said in a statement.
