Samsung expects profit to fall 35% in the fourth quarter of 2023, misses expectations

Samsung Electronics expects a significant drop in operating profit for the fourth quarter of 2023, missing expectations. Operating profit is projected to be 35% lower compared to the same period last year. This decline is attributed to a rebound in semiconductor prices, which has narrowed the losses in Samsung’s main profit-driving segment. Fourth-quarter revenue is estimated to have fallen by 4.9% year-on-year. Samsung is the world’s largest producer of dynamic random-access memory (DRAM) chips used in consumer devices like smartphones and computers. Memory chip prices fell last year due to excess inventories and weak demand, impacting Samsung’s earnings. However, memory prices are expected to rebound in 2023, driven by production cuts and increased demand. Experts anticipate price hikes and improved earnings for memory makers in the coming months, leading to positive outlooks for the industry. The overall semiconductor sales market is projected to recover in 2024, driven by demand for artificial intelligence (AI) applications.