Samsung sees Q4 2022 profits falling to 8-year low amid weaker demand

Samsung projects its profits to fall by 69 percent for the last three months of 2022 amid weaker demand for gadgets.

File photo: Samsung Galaxy Z Flip4

Weaker demand weighs down on Samsung's profits

According to a report by the Reuters, Samsung’s profits for the last quarter of 2022 is seen to hit 4.3 trillion won (around PHP 188.92 billion) from 13.87 trillion won a year earlier (around PHP 609.37 billion).

It was the South Korean company's lowest quarterly profit since 2014, even missing investor expectations of around 5.9 trillion won, the BBC noted.

Samsung said it saw demand for computer chips to decline more than what was projected as customers cut stocks on key components for digital devices.

For the memory business, the decline in fourth-quarter demand was greater than expected as customers adjusted inventories in their effort to further tighten finances, Samsung said in a statement.

Smartphone sales and revenue decreased due to weak demand resulting from prolonged macro issues, it added.

Samsung is set to release its full financial statement on January 31.

This comes as slowdown in the global economy hits memory chips prices and demand for electronic gadgets.

Prior to Samsung, several other tech companies have noted how the global economic slowdown is affecting their business.

Amazon earlier said it planned removing more than 18,000 jobs—the largest in its history — to cut on costs.

Facebook's parent company Meta also announced in November 2022 a mass layoff that will cut off 11,000 jobs.

Twitter, meanwhile, cut about half of its personnel after Elon Musk took over its leadership.

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Via: Reuters, BBC