In its latest financial report for the second quarter of 2023, Samsung revealed a decline in revenue compared to the same period last year. The revenue of 60.01 trillion won was 22% lower than the 77.2 trillion won recorded in the same period last year. In addition, second-quarter sales of 63.75 trillion won were down 5.9% from the previous quarter. Samsung Electronics profit level fell to its lowest level in over 14 years as a result of the continued decline in semiconductor demand.
Samsung Electronics’ main source of revenue remains its semiconductor foundry business. However, the sector’s operating profit for the second quarter was -4.36 trillion won, down sharply from a profit of 9.98 trillion won in the same period last year and only marginally better than the previous quarter’s loss of 4.58 trillion won. The company’s revenue for the period was 14.73 trillion won, compared to 28.5 trillion won in the same period last year.
Despite these difficulties, the second quarter saw an improvement in DRAM shipments. Samsung’s DRAM sales exceeded the previous quarter’s forecast due to the increasing demand for artificial intelligence applications. Performance in the memory market improved, with a particular focus on HBM and DDR5 products.
The mobile division of Samsung Electronics, which is part of the consumer electronics business, recorded an operating profit of 3.04 trillion won in the second quarter, up from 2.62 trillion won in the same period last year. However, sales were affected by lower demand in the global smartphone market as the impact of the launch of the Samsung S23 wore off, and the mass market recovery took longer than expected.
According to Nabila Popal, research director at IDC, a respected research organization, “Discussions with channels, supply chain partners and key original equipment manufacturers suggest a further delay in the recovery and a deterioration in the second half of the year. This creates new difficulties for Samsung and the industry as a whole.
