Samsung has announced a Q2 2023 operating profit of KRW 0.67 trillion ($527 million), a modest increase from the previous quarter, primarily due to a lesser loss from its memory business. However, this profit is significantly smaller than the KRW 14.1 trillion ($10.8 billion) operating profit reported in July 2022. In its recent earnings report, the tech heavyweight disclosed a consolidated revenue of KRW 60.01 trillion ($47 billion), marking a 6 percent decrease from the previous quarter and substantially lower than the record KRW 77.2 trillion ($59.4 billion) from last year.
The primary reason for this decrease in revenue, according to Samsung, is the falling smartphone shipments following the initial impact of the Galaxy S23 launch in the first quarter. Previously, Samsung’s mobile division saw success in the earning period due to robust sales of the Galaxy S23 series, notably the Galaxy S23 Ultra. However, the division’s consolidated revenue has now fallen from KRW 31.82 trillion ($23.7 billion) to KRW 25.55 trillion ($20 billion), while its operating profit also declined by $500 billion.
Samsung predicts a recovery in the smartphone market in the second half of the year, particularly in the premium segment. In response, the company aims to prioritize its newly introduced Galaxy Z Flip 5 and Galaxy Z Fold 5 series. The Galaxy Z Flip 5 features a 3.6-inch external display, an upgrade from the previous model’s 1.9-inch display, while the Galaxy Z Fold 5 introduces a new hinge that eliminates the gap between the two screen halves.
In contrast, Samsung’s memory business, the DS Division, saw a slight uptick in revenue from KRW 13.73 trillion ($10.2 billion) in Q1 to KRW 14.73 trillion ($11.53 billion). Even though its operating loss remains significant at KRW 4.58 trillion ($3.4 billion), it’s slightly lesser at KRW 4.36 trillion ($3.4 billion). Moving ahead, the company intends to concentrate on selling “high-value-added products” like DDR5 and LPDDR5x components.
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Frequently Asked Questions (FAQs) about Samsung’s Q3 revenue decline
What is Samsung’s operating profit for Q2 2023?
Samsung reported an operating profit of KRW 0.67 trillion ($527 million) for the second quarter of 2023.
Why did Samsung’s revenue decrease in Q3?
Samsung attributes the decrease in Q3 revenue primarily to a decline in smartphone shipments after the impact of the Galaxy S23 launch in the first quarter waned.
How did Samsung’s mobile division perform?
Samsung’s mobile division performed well in the previous earning period due to strong sales of the Galaxy S23 series, particularly the Galaxy S23 Ultra. However, consolidated revenue has slipped from KRW 31.82 trillion ($23.7 billion) to KRW 25.55 trillion ($20 billion), and its operating profit also decreased by $500 billion.
What are Samsung’s expectations for the smartphone market?
Samsung expects a rebound in the overall smartphone market in the second half of the year, particularly in the premium segment. The company plans to focus its efforts on the newly launched Galaxy Z Flip 5 and Galaxy Z Fold 5 series.
How is Samsung’s DS Division or memory business performing?
Samsung’s DS Division experienced a slight recovery in revenue from KRW 13.73 trillion ($10.2 billion) in Q1 to KRW 14.73 trillion ($11.53 billion). Despite a considerable operating loss, it was slightly less at KRW 4.36 trillion ($3.4 billion) compared to KRW 4.58 trillion ($3.4 billion) in Q1.
5 comments
Good to see their memory business is doing a bit better. those DDR5 and LPDDR5x components could be game changers!
it’s a rough patch, but I think Samsung can bounce back. Their Q2 profit isn’t that bad considering the challenges they’re facing. Looking forward to H2.
Woah, that’s a big drop for Samsung. Guess the Galaxy S23 couldn’t keep the momentum going. Wonder how the new Z series gonna do?
I can’t believe how much they’re banking on the Z Flip 5 and Z Fold 5! Fingers crossed, they deliver. that 3.6-inch display sounds dope tho
not surprised S23’s effect faded, you can’t rely on a single phone launch for the whole year. Need to step up their game!