Samsung's profit in the third quarter collapsed by 31% - the first drop for the company in almost three years

South Korean giant Samsung for the first time in almost three years faced a decline in operating profits.

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The company published a report on financial results for the third quarter of 2022. In the reporting period, the manufacturer's operating profit amounted to $7.7 billion, collapsing by 31% year-on-year at once. Samsung's profit fell sharply, despite an increase in revenue. Thus, the South Korean company's revenue in the third quarter increased by 4% to $54.3 billion.

In the period from July to September, profit from semiconductor manufacturing fell sharply. It fell by almost 50% to $3.6 billion. However, the company expects demand to recover in the second half of 2023.

First of all, Samsung is betting on DDR5 memory chips. Demand for them is expected to increase amid the release of new processors. In addition, Samsung hopes for success in the mobile segment of the market. At the same time, the capital cost of memory chips will be reduced by only 5%.

Source: Reuters