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Falling Demand Causes Samsung to Lower Profits Warning

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Samsung has announced that their profits are going down, so they need to reduce the production of memory chips. They predict that in 2023’s first quarter, they will only earn 600 billion won which is about $455 million (96% less than last year). This could be a negative sign for the whole tech industry due to low demand for these memory chips.

Samsung announced they would adjust the amount of memory they make to a good level. On top of this, they’re changing their line operations and investing in areas like clean room technology and research and development (R&D). All this is because Samsung thinks that the demand for memory chips will increase over time.

Samsung is the leading manufacturer for DRAM and NAND flash memory chips which are used in all kinds of consumer devices, from smart watches to mobile phones and laptops. However, there is too much of these types of memory chips available right now which shows that people have stopped buying as much due to a worldwide economic crisis.

After a time of rapid growth in the tech industry because of the coronavirus, the prices for memory parts like DRAM and NAND have decreased at an alarming rate – falling by 20 and 15 percent respectively in just one quarter. On the plus side, Samsung was able to make money off their recently released Galaxy S23 smartphone. More information about their profits will come out soon at the end of April.

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