The final three months of 2022 are projected to see Samsung’s profits decline by 69% to their lowest level in eight years.
The largest manufacturer of memory chips, cellphones, and TVs in the world anticipated that its operating profit would drop to about 4.3tn won ($3.4bn; £2.8bn) for the time period.
It occurs when the recession in the world economy affects the cost of memory chips and the demand for electronic devices.
As customers tighten their belts, global technology titans have recently taken a hit.
It was Samsung’s lowest quarterly profit since 2014 and fell short of 5.9 trillion won in investor estimates.
The South Korean business claimed that when clients reduced their supplies of the essential parts for digital gadgets, there was a greater-than-anticipated decline in demand for computer chips.
As clients changed inventory in an effort to further restrict their budgets, the fall in demand for memory products in the fourth quarter was larger than anticipated, according to Samsung.
It said, “Smartphone sales and revenue declined owing to sluggish demand brought on by persistent economic difficulties.
On January 31, Samsung is expected to release its complete financial statement.
It is the most recent significant technological corporation to discuss the effects of the global economic downturn on its operations.
Sales have also dropped after the pandemic’s spike in demand, when consumers at home spent a lot of money online.
Tens of thousands of jobs are being lost throughout the worldwide IT sector as a result of sluggish sales and mounting worries about a recession.
