Samsung Electronics has issued its quarterly outlook, providing an early look at its financial performance before the full fiscal report is released. Unfortunately, the Korean corporation expects a large drop in profits for the second consecutive quarter.
The aggregated numbers show an operational profit of KRW 0.5 to 0.7 billion (equal to around $455 million), representing a startling 95% reduction from the same period last year.
Furthermore, both quarterly and annual sales figures have declined. The total income for the quarter is expected to be between 59 and 61 trillion KRW, or about $46 billion.
Samsung hasn’t seen profits this high since the first quarter of 2009, when it earned KRW 590 billion (about $454 million). On July 27, the complete results will be released, offering a detailed assessment of the company’s performance.
Due to slow demand and geopolitical worries, it is already expected that the corporation will curtail memory chip output. The original explanation for the Ukrainian conflict is no longer valid, demonstrating that memory chips are no longer the lucrative cash cow they once were.
Samsung must now vary its strategy in order to maintain a steady flow of revenue. However, as previously stated, we will have to wait for thorough financial reports with actual outcomes to determine how well Samsung is truly performing.