Samsung’s having a terrible financial year
Samsung Electronics is having another bad quarter according to the company’s own preliminary estimates. This time, it’s warning that quarterly operating profit decreased 96 per cent compared to the same period last year, worse than the two-thirds plunge it suffered the three months prior. Not even robust sales of the new Galaxy S23 series could overcome a global plummet in chip demand.
Semiconductor demand has waned since peak covid as everyone splurged on lockdown toys and tools. Now the global economic slowdown has caused consumers to think twice about buying that next gadget resulting in swollen chip inventories for companies like Samsung. And according to my ECON101 professor, prices will fall when there’s more supply than demand...