Samsung's operating profit plummeted by 95% to just $455m - not seen since the crisis in 2009

Sales of Samsung's Galaxy S23 smartphones are encouraging. The popularity of the next-generation flagship is much higher than the Galaxy S22, but this has only made up for a disappointing first quarter of 2023 for the South Korean manufacturer.

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Like many other companies, Samsung has faced the consequences of declining demand for semiconductor products. This has been a key factor in the drop in financial results. Other market players, like Qualcomm, have seen an increase in chip inventories.

The South Korean technology giant managed to record sales of 63 trillion Korean won ($47.82 billion) in the first quarter of 2023. The figure was down 19% from the same period in 2022 ($59.12 billion).

But operating profit is even more worrying. It was only 600 billion Korean won ($455 million) in the reporting period. The last time this happened to Samsung was 14 years ago. Compared to the first quarter of 2022, operating profit fell by more than 95%.

Source: Samsung