Samsung Sees Diminished Q2 2023 Profits; Points to Waning Smartphone Shipments
Samsung has unveiled its Q2 2023 financial performance, revealing an operating profit of KRW 0.67 trillion ($527 million) — a marginal rise from the prior quarter. This was bolstered by the reduced loss in its memory segment. However, this current figure pales in comparison to the monumental KRW 14.1 trillion ($10.8 billion) operating profit from July 2022. Additionally, the consolidated revenue for this quarter stands at KRW 60.01 trillion ($47 billion), marking a 6% drop from the prior quarter and a stark contrast to last year’s high of KRW 77.2 trillion ($59.4 billion).
This reduction in revenue is attributed largely to dwindling smartphone shipments, especially as the initial surge from the Galaxy S23’s launch began to taper off. To put things in perspective, during its peak, Samsung’s mobile arm saw strong revenue, bolstered by robust sales of the Galaxy S23 lineup, most notably the Galaxy S23 Ultra. However, this segment’s consolidated revenue has now dwindled from KRW 31.82 trillion ($23.7 billion) to KRW 25.55 trillion ($20 billion), translating to a sharp $500 billion dip in operating profit.
However, Samsung remains optimistic about the latter half of the year, especially within the luxury smartphone domain. Their strategy pivots towards their newly introduced Galaxy Z Flip 5 and Galaxy Z Fold 5 series. Among the features, the Galaxy Z Flip 5 now sports a larger 3.6-inch external screen, up from the previous 1.9-inch, and the Galaxy Z Fold 5 introduces a revamped hinge, eliminating the noticeable gap when folded.
In other sectors, Samsung’s Memory Division saw a modest revenue uplift, moving from KRW 13.73 trillion ($10.2 billion) in Q1 to KRW 14.73 trillion ($11.53 billion). While the operating loss remains substantial at KRW 4.58 trillion ($3.4 billion), it’s slightly less severe than the previous KRW 4.36 trillion ($3.4 billion). Moving forward, Samsung’s strategy revolves around pushing “high-value-added products,” spotlighting components like DDR5 and LPDDR5x.
