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Samsung reports the first Q3 profit drop in three years

Samsung is slowing down its growth (Source: Social Barrel)
Samsung is slowing down its growth (Source: Social Barrel)
According to the data revealed by the company's preliminary earnings guidance, Samsung Electronics' operating profit took a nearly 32 percent dive in the third quarter, the first time it dropped in the last three years. This was most likely caused by the low demand for memory chips and came alongside a less than 3 percent revenue increase.

Samsung has managed to grow continuously in the third quarter for three years, but now that growth has come to a rather abrupt halt. This halt translates to an operating profit drop of almost 32 percent, while the company's revenue managed to grow by less than 3 percent over the same period of last year. 

According to Samsung's earnings guidance for the third quarter of 2022, the company's financial data looks like this: 

  • Consolidated Sales: Approximately 76 trillion Korean won (about US$53.7 billion)
  • Consolidated Operating Profit: Approximately 10.8 trillion Korean won ( roughly US$7.6 billion) 

The estimates above are based on K-IFRS and, compared to the same figures for the third quarter of last year, they show a 31.73 percent drop in operating sales, but complemented by a barely noticeable revenue growth of 2.73 percent. 

Samsung will disclose its full earnings for the third quarter near the end of October. Meanwhile, analysts think that the profit drop has been caused by the lowered demand for memory chips. The drop in demand came as the server sector customers were more conservative in their spending and readjusting their memory chip inventory. 

We will get back to this topic in roughly three weeks, as soon as more detailed financial data regarding Samsung's performance in all areas of the tech market becomes available, so stay tuned.

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> Expert Reviews and News on Laptops, Smartphones and Tech Innovations > News > News Archive > Newsarchive 2022 10 > Samsung reports the first Q3 profit drop in three years
Codrut Nistor, 2022-10- 7 (Update: 2022-10- 7)