
Samsung issued its Q1 2023 earnings call, and reported a dismal $556.5 million in operating profit, representing a staggering 96 percent fall from the previous quarter.
It stared like the company's finest days were behind it, but, similar to Huawei's return, the Korean giant rapidly moved beyond all of the negativity and intends to report an incredible 931 percent profit in its upcoming Q1 2024 financials.
Samsung’s early statement stated some insights into its potential earnings that the company’s sales might be in the 70 trillion to 72 trillion Korean won range. In terms of profit, Samsung might earn up to 6.6 trillion Korean won, or $4.89 billion, representing a staggering 931 percent gain over the same period last year.
CNBC reported that Samsung’s valuation reached $370 billion, having earlier hit this level in April 2021. Foreign investors seem to be confident about Samsung's future, as they are claimed to have acquired an estimated $4.2 billion in stock.
One of the reasons for Samsung's poor performance in 2023, despite being the world's largest DRAM chip producer, is that component prices fell last year due to surplus inventory generated by the post-COVID-19 controversy.
In addition, a decrease in demand for computer products that use DRAM memory chips, such as smartphones, tablets, and laptops, resulted in less revenue.
While the AI era is on users, Samsung recently revealed its next-generation HBM3E memory — an important component for GPUs, which NVIDIA is using as it seeks to remain dominant in the AI computing field. The Korean giant plans to launch its own AI accelerator Mach-1, in 2025, competing with NVIDIA.
Samsung plans to maintain this development while cutting expenses by using a dual-chipset plan in the Galaxy S25 series, which will debut next year, consisting of the Exynos 2500 and Snapdragon 8 Gen 4 processor.