SAMSUNG

South Korean giant reports sharp drop in revenue

Like most IT industry players, South Korea's Samsung Electronics is unaffected by the recession-prone economic environment. As per analysts' expectations, the company will be required to post a significant 25% drop in profit in the third quarter of this year – this is also the first time in three years that the company's profit has fallen annually.

Due to soaring inflation and energy prices, as well as other negative effects of the Ukrainian-Russian conflict, the investment and purchase mood of residential and commercial customers has significantly decreased in recent months, which affects the operation of virtually all divisions of Samsung business.

Operating profit of Samsung, the world's largest memory chip maker and leader of the global smartphone market, according to analyst consensus, will be just 11.8 trillion won ($8.3 billion) in the third quarter. , which practically brings it to the level of the first quarter of 2021 return the company's ability to generate profit. Of course, the big picture includes the fact that the pandemic – until it subsided – with the exception of the initial period, significantly boosted demand for almost all of the company's products.

All this is well illustrated by the fact that, according to some calculations, Samsung's smartphone sales fell by around 11% in the quarter, but the quantity delivered was still close to 62 million units.

As a result of the unfavorable economic environment, Samsung has lost nearly 30% of its stock market value this year, but is still outperforming the industry benchmark, the Philadelphia Semiconductor Index (.SOX), which is currently down 37%.

mundophone