Samsung's operating profit dropped over 95% for the three months ending in March, resulting in the lowest profit output since 2009
Bloomberg
Samsung's operating profit dropped by over 95% for the three months ending in March. This comes as the company has announced that it experienced its lowest profit output since 2009.
Due to this, the company said it would scale back on chip production. The company said it experienced its slimmest profits since 2009 when the financial crisis happened.
Operating profit reportedly fell $450 as sales fell by 19%, reaching $47.9 billion. This resulted in the company deciding to scale back on chip production.
It was noted that a factor that affected Samsung's pricing and profits was its inventory pileup. With the company's decision to cut down on production, a recovery could be seen for chip prices.
Yuanta Securities Co. analyst Baik Gilhyun gave a statement regarding the situation, saying the move by Samsung could help resolve short-term concerns.
Gilhyun: “Because it is adjusting production and lowering memory-chip output to a meaningful level, the supply-demand situation can improve much faster,”
Samsung noted that it would shift its strategies and focus on the mid-to-long term. The company said it would invest in different aspects to help "solidify tech leadership."
“We have cut short-term production plans, but as we project solid demand for the mid-to-long term, we will continue to invest in infrastructure to secure essential cleanrooms and to expand R&D investment to solidify tech leadership,”
In July 2022, it was revealed that Congress personally invested in semiconductors. We showed the value of semiconductor stocks that were owned by the House and even the value of semiconductors stocks owned by the Senate.
Toward the end of last year, Apple CEO Tim Cook announced that the company would venture into US-made chips through the Arizona TSMC Factory. This comes as the company is trying to rely less on China and more on other places, including India and the US.
See flow at unusualwhales.com/flow.
Other News:
- Congress personally invested in semiconductors
- Apple CEO Tim Cook Says Company Will Embark in US-Made Chips with Arizona TSMC Factory
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