Samsung Electronics reported a 95 per cent drop in profits for the second quarter of 2023, blaming the decline in smartphone shipments.
Samsung said that revenue for the quarter was 60.01 trillion Korean won (about $47.21 billion), down 6 per cent from the previous quarter. Operating profit was 0.67 trillion Korean won, down 95 per cent from the same period last year. It added that the decline in smartphone shipments was due to high interest rates and inflation. The company also said that the boost from the launch of the Galaxy S23 series had faded.
Samsung is hopeful that the launch of its foldable smartphones, the Galaxy Z Flip 5 and Galaxy Z Fold 5, will help to offset some of the losses in the second half of the year. The company said that it expects the overall smartphone market to return to year-on-year growth in the second half of the year, especially in the premium market.
The head of Samsung’s mobile division, TM Roh, expressed confidence in the company’s foldable devices. He predicts that one out of every three Galaxy flagship smartphones sold in Korea this year will be a foldable, and he expects global foldable sales to exceed 20 per cent of all Galaxy flagship sales.
The sources for this piece include an article in AndroidAuthority.