Samsung Electronics reported financial results for third quarter 2023
Samsung announced its third-quarter financials for 2023, revealing revenues of 67.40 trillion KRW, marking a decrease from the previous year’s 76.78 trillion KRW and slightly below market expectations of 67.62 trillion KRW. This represents a year-on-year decline of 12.22%, but a sequential growth of 12.31% from the prior quarter’s 60.01 trillion KRW.
Additionally, operating profit stood at 2.43 trillion KRW, which pales in comparison to the 10.85 trillion KRW of the same period last year but shows significant growth from the previous quarter’s 0.67 trillion KRW. Gross profit was 20.79 trillion KRW, down from the prior year’s 28.71 trillion KRW, but above the last quarter’s 18.36 trillion KRW. Net profit amounted to 5.84 trillion KRW, which is higher than the preceding quarter’s 1.72 trillion KRW but lower than the 9.39 trillion KRW of the same period last year.
Samsung conveyed that the performance for the third quarter of 2023 improved in comparison to the preceding quarter, primarily due to the robust sales of its flagship smartphones and a reduction in the semiconductor sector’s losses, which decreased from the second quarter’s 4.36 trillion KRW to 3.75 trillion KRW this quarter. On the whole, there was a commendable increase in the average selling price (ASP) for both DRAM and NAND compared to the previous quarter.
The market’s demand for Artificial Intelligence (AI) technology remains robust, and Samsung plans to expand sales of advanced technology products, including DDR5, LPDDR5X, UFS 4.0, and HBM. Although the macroeconomic environment retains a degree of uncertainty, with year-end promotions and the release of new smartphones by major clients, coupled with a surge in consumer device demand, Samsung is optimistic about a potential recovery in the memory chip market.