Samsung’s financial woes continue as the company reports a 95% decline in year-over-year earnings for the second consecutive quarter. In Q2 2023, the Korean tech giant posted a profit of 0.67 trillion Korean won (approximately $523.5 million), a stark contrast to the 14.12 trillion won ($11.06 billion) profit it made the previous year.
The company attributes this significant loss in profit to a decline in smartphone shipments, which can be attributed to “high interest rates and inflation.” Counterpoint Research’s report indicates that the US smartphone market experienced a 24% year-on-year decrease in Q2 2023. Samsung, specifically, faced a 37% yearly decline in shipments, resulting in 23% of the total US market share.
Adding to the challenges, the initial boost from the Galaxy S23 series launch has now faded. This could indicate a need for innovation and more appealing features to stand out in a highly competitive market.
However, there are still glimmers of hope for Samsung. The company is optimistic about its latest releases, the Galaxy Z Flip 5 and Galaxy Z Fold 5. It believes that these foldable smartphones will have a significant impact on the market. TM Roh, the head of Samsung’s mobile division, states that he expects the company to sell “one out of three Galaxy flagship smartphones in Korea this year as a foldable.” He also predicts that “global foldable sales will exceed 20% of all Galaxy flagships.”
Source: Androidauthority
