Samsung Profit Declined in Q3 2022, First Time in Three Years

Samsung Electronics has just announced its earnings for Q3 2022. Earlier this month, the company revealed that its operating profit is expected to decline. Now, Samsung has reported its full earnings, revealing its first operating profit declined in three years. According to the report, Samsung Electronics’ revenue was up by 4% at KRW 76.78 trillion (around $54.1 billion), compared to Q3 2021, its operating profit was down by more than 31%, at KRW 10.85 trillion (around $7.65B). This profit drop comes almost a year after the company announced its second-highest profit in its history. Most of this downturn is due to a slump in the semiconductor memory market.

Samsung Profit Declined in Q3 2022, First Time in Three Years

Samsung’s chip business reported revenue of KRW 23 trillion, a 14% drop year-over-year. This segment recorded an operating profit of KRW 5.12 trillion, which is down by almost half compared to its numbers from Q2 2022. However, Samsung Foundry, the company’s contract chip-making business, had the highest revenue ever in its history.

SDC (Samsung Display Corporation) saw record revenue for the mobile panel business as demand increased following the release of new flagship smartphones, including foldable. The company is also hopeful to expand its flagship and foldable devices next year. However, the large panel business continued to post losses amid weak TV and monitor markets.

Moreover, Samsung Display makes QLED, OLED, and QD-OLED panels for mobile devices, laptops, monitors, and TVs. It contributed KRW 1.98 trillion to Samsung Electronics’ operating profit for Q3 2022, which is higher than Q3 2021 and Q2 2022. Samsung revealed that its supply share increased in Apple’s supply chain for the iPhone 14 series.

Similarly, the MX (Mobile eXperience) Business posted solid profitability due to the sales of flagship products, including foldable, as well as new wearables. The Networks Business saw an improvement in earnings.

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