Samsung’s Profit Is Down 95% — Now the Apple Rival Is Relying on an ‘Unusual’ Strategy to Recover
The company’s memory chip division saw a record $3.4 billion loss.
It continues to be a tough time for tech companies — even the giants.
Samsung Electronics Co.’s profits are officially down 95% for Q1 2023; the company saw 14.12 trillion Korean won ($10.7 billion) in profit for Q1 2022 and just 640 billion won ($478.55 million) this past quarter, reported.
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A major contributor to the slump? The company’s memory chip division posted a record $3.4 billion loss amid the $160 billion dip in the global memory industry, per . According to the outlet, the company’s semiconductor division is typically its largest, and the staggering drop in Q1 was “unprecedented.”
The company plans to reduce its memory production by a “meaningful” amount to safeguard against an approximately 70% fall in prices over the past nine months, per The Verge. But, in what Bloomberg calls an “unusual move,” Samsung doesn’t intend to slash its investment in memory chips in a bid to maintain its long-term competitiveness.
Related: Why The Demand for Tech Jobs Will Only Get Stronger | Â鶹Éç
semiconductorIt continues to be a tough time for tech companies — even the giants.
Samsung Electronics Co.’s profits are officially down 95% for Q1 2023; the company saw 14.12 trillion Korean won ($10.7 billion) in profit for Q1 2022 and just 640 billion won ($478.55 million) this past quarter, reported.
Related: 5 Things Tech Employers Can Do to Mitigate Employee Fatigue
A major contributor to the slump? The company’s memory chip division posted a record $3.4 billion loss amid the $160 billion dip in the global memory industry, per . According to the outlet, the company’s semiconductor division is typically its largest, and the staggering drop in Q1 was “unprecedented.”
The company plans to reduce its memory production by a “meaningful” amount to safeguard against an approximately 70% fall in prices over the past nine months, per The Verge. But, in what Bloomberg calls an “unusual move,” Samsung doesn’t intend to slash its investment in memory chips in a bid to maintain its long-term competitiveness.
Related: Why The Demand for Tech Jobs Will Only Get Stronger | Â鶹Éç
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