Shulou(Shulou.com)11/24 Report--

CTOnews.com news on January 6, Samsung Electronics disclosed preliminary verification data on January 6, according to the consolidated financial statements, operating profit in 2022 was 43.37 trillion won (about 234.2 billion yuan), down 16% from the same period last year; sales were 301.77 trillion won (about 1.63 trillion yuan), an increase of 7.93% over the same period last year. Samsung Electronics made an operating profit of 4.3 trillion won (about 23.263 billion yuan) in the fourth quarter of last year, down 69% from a year earlier, while sales were 70 trillion won (378.7 billion yuan).

Samsung's Q4 operating profit is expected to fall 69% in 2022, the lowest in six years, as the global economic downturn weakens demand for electronic devices and cloud computing, according to Reuters.

The world's largest maker of memory chips, smartphones and televisions estimates that Q4 profits fell to 4.3 trillion won from 13.87 trillion won a year ago.

It was Samsung's smallest quarterly profit since Q3 in 2016, below analysts' expectations of 5.9 trillion won (about 31.919 billion yuan).

"for the memory business, demand fell more than expected in the fourth quarter as customers adjusted inventories to further tighten their finances. This is due to concerns about the deterioration of consumer confidence as a result of persistently high global interest rates and a weak economic outlook," Samsung said in a statement.

CTOnews.com learned that Samsung said in a brief preliminary financial report that revenue could fall 9 per cent from a year earlier to 70 trillion won.

Samsung said the price of memory chips also fell throughout the quarter due to an increase in inventory among memory suppliers, resulting in a larger-than-expected drop in chip prices.

Samsung added that profits in its mobile business fell in the fourth quarter due to weak demand due to long-term macroeconomic problems and a decline in smartphone sales and revenue.

Analysts expect Samsung's shipments of smartphones and chips to fall short of market expectations. The price of DRAM memory chips fell 40% from a year earlier, wiping out a large portion of Samsung's quarterly profits in the process. Rival memory chip makers such as Micron and SK Hynix have also been affected and have decided to cut planned investment in 2023.

Samsung is taking a different approach. The company is investing a lot of money to maintain its 2023 investment plan. This will put it in an advantageous position when the memory chip market recovers. As of September 2022, Samsung had more than $100 billion (688 billion yuan) in cash.

Samsung is expected to release preliminary results for 2022 Q4 tomorrow and release a full earnings report later this month.

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