Samsung sees 95% drop in profits for a second consecutive quarter

In the first quarter of the year, Samsung reported 95% decline in year-over-year earnings. Fast forward to today and it appears Samsung finds itself in the same hole for the second consecutive quarter.

Today, the Korean tech giant posted its Q2 2023 financial results, and it’s not pretty. According to the report, the company once again saw a 95% decline in year-over-year profits. It appears Samsung brought in a profit of 0.67 trillion ($523.5 million) Korean won (KRW), which is a drop in the bucket to the 14.12 trillion KRW ($11.06 billion) it made last year.

Samsung attributes this loss in profit to the decline in smartphone shipments due to “high interest rates and inflation.” As a report from Counterpoint Research suggests, the US smartphone market fell by 24% year-on-year in Q2 2023. Samsung, in particular, saw a 37% yearly decline in shipments, giving it 23% of the total US market.

Something else that doesn’t seem to bode well is the fact that Samsung believes the boost that came from the launch of the Galaxy S23 series has faded.

Sales decreased sequentially for the MX Business as the effect of the Galaxy S23 launch from Q1 faded. Mass market recovery was also delayed due to the continued economic downturn, affecting Q2 sales.

However, it’s not all doom and gloom. The manufacturer highlights the launch of the Galaxy Z Flip 5 and Galaxy Z Fold 5. It also believes that the smartphone market will make a return.

For the second half of 2023, the overall smartphone market is expected to return to year-on-year growth, especially in the premium market.

Samsung has high hopes for its two foldables. In a Google translated quote from TM Roh, the head of Samsung’s mobile division states that he believes the company will sell “one out of three Galaxy flagship smartphones in Korea this year as a foldable.” He also says, “global foldable sales will exceed 20% of all Galaxy flagships.”