Samsung Electronics' profits fall by more than two-thirds in the last quarter of 2022
In a statement, Samsung said its fourth-quarter earnings were “well below current market expectations.”
REUTERS - Kim Hong-Ji
Text by: RFI Follow
1 min
The South Korean group, leader in the world market for
smartphones
and televisions, claims to have reached its lowest level in eight years.
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From October to December, the South Korean company barely reached 3.230 million euros in profit, a drop of 69% compared to the same period a year earlier.
This is the smallest profit the group has achieved since 2014.
Samsung sold fewer
smartphones
and other electronic devices.
Fewer semiconductors were also supplied to Apple, a major customer and nevertheless a competitor of the South Korean group.
Yet until the second quarter of 2022,
smartphone
maker Galaxy, like other companies in the tech sector, has largely benefited from strong demand for electronic devices, and the chips that power them. during the pandemic.
Inflation and fall in demand
In a statement, Samsung said its fourth-quarter earnings were "
far below current market expectations
", attributing the performance to macroeconomic problems, compounded by central bank interest rates kept high around the world.
Weak demand for memory chips was "
bigger than expected as customers adjusted inventory...to further clean up their finances, amid concerns about consumer sentiment as global interest rates continue to fall. "
'being high and poor economic prospects
'.
But since then, the world economy has been confronted with numerous tensions: galloping inflation, rising interest rates and a stronger than expected fall in demand, have got the better of these good results from the South Korean juggernaut, whose figure business accounts for one-fifth of South Korea's GDP.
►Also read
: South Korea: Samsung's heir back in favor at the head of the conglomerate
(
October 27, 2022
)
(
With
AFP)
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