Samsung blames low smartphone demand for revenue loss in Q2

Samsung blames the low demand for smartphones to explain its revenue loss in the second quarter. The giant is expecting a rebound in the second half of the year.

Samsung reported operating income of approximately $527 million for the second quarter of 2023, slightly higher than the previous quarter’s result, thanks to its memory subsidiary, which recorded a more contained loss. This figure is also, however, much lower than the $10.8 billion published in July 2022. In its latest financial report, the South Korean tech giant also reported consolidated sales of $47 billion, down 6% from the previous quarter, far from last year’s record of 59.$4 billion.

Samsung blames low smartphone demand for revenue loss in Q2

The company mainly attributed this decrease to a decline in smartphone shipments “as a result of the launch of the Galaxy S23” in the first quarter. If you remember, Samsung’s mobile division had done very well in the previous period thanks to strong sales of the Galaxy S23, especially the Galaxy S23 Ultra. Today, the division’s consolidated revenue grew from $23.7 billion to $20 billion, while its operating income lost $500 million.

Samsung expects the global smartphone market to rebound in the second half of the year, particularly in the premium segment. Unsurprisingly, the giant will focus on the Galaxy Z Flip 5 and Galaxy Z Fold 5, which have recently been made official. The Galaxy Z Flip 5 features a 3.6-inch external display – compared to only 1.9 inches for the previous model – while the Galaxy Z Fold 5 features a new hinge that removes the empty space between the two halves of the screen when folded.

The giant expects a rebound for the second half of the year

At the same time, Samsung’s DS division, for memory, is doing slightly better than the previous period, going from $10.2 billion in revenue to $11.53 billion. Its operating loss, if it remains massive ($3.4 billion) is slightly lower. Now the Korean giant will focus on sales of what it calls “high value-added products”, such as DDR5 and LPDR5x.