Thursday, June 13, 2024

Samsung’s Q2 profit drops 95% as chip downturn continues

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Samsung logo in black and white

Corinne Reichert/ZDNET

Samsung’s working revenue nosedived within the second quarter from the heavy losses incurred by its chip division however strong performances from its different companies allowed the corporate to stay worthwhile.

The South Korean tech big stated it recorded 60 trillion gained in income and 0.67 trillion gained in working revenue, a drop of twenty-two% and 95%, respectively, from a 12 months in the past.

Samsung’s chip division, or System Options Division, recorded a steep working lack of 4.36 trillion gained, although it was an enchancment from the earlier quarter.

The narrower loss got here from the corporate’s deal with high-end merchandise reminiscent of HBM and DDR5 reminiscence chips which might be in excessive demand for AI purposes.

Total purchases remained low through the quarter, nevertheless, and Samsung is anticipating a gradual restoration of the market through the second half of the 12 months.

Alternatively, Samsung’s client electronics division, referred to as System Expertise Division by the corporate, recorded excessive profitability from increased gross sales of premium TVs and digital home equipment, the corporate stated.

The Cellular Expertise Enterprise, which is a part of the buyer electronics division, recorded an working revenue of three trillion gained.

The impact of launching the Galaxy S23 Collection pale within the second quarter however for the primary half of the 12 months in complete, they carried out higher than their predecessors from a 12 months in the past, Samsung famous.

For the rest of the 12 months, the corporate is anticipating development from final 12 months, particularly within the premium sector, which will likely be buoyed by Samsung’s deal with the not too long ago launched Galaxy Z Flip 5 and Galaxy Z Fold 5.

Regardless of the poor earnings, the corporate’s spending through the quarter stood at 14.5 trillion gained, which principally went to upgrading its chip factories.

Samsung Show additionally chipped in a significant 0.84 trillion gained in working revenue from the demand for its panels from smartphones.

The show panel enterprise unit expects an enchancment in earnings within the second half of the 12 months from launches of flagship smartphones by clients, Samsung stated.



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