Samsung Expects 78% Profit Decline, Chip Business Shows Early Signs of Recovery

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Repercussions of the global economic downturn have made it to the earning reports of the major tech giants. Some companies are on the ledge and some are trying to recover from the past few months. The situation is not so different for the South Korean tech giant – Samsung considering the earnings guidance report of last quarter. The global giant isSamsung’s profit declined by 78% in Q3, 2023, but still, it is better than the company’s expectations.

Apart from the increasing demands, Samsung’s increasing focus on high-end chips like DRAM is the primary reason for the recovery. It is expected to recover from the severe downfall in the coming quarters due to a rebound in the semiconductor chip demand. These chips are primarily used in AI and are expected to regain further its actual demand by the end of this year.

Apart from high-interest rates, the global economic slowdown has led to a downfall in the demand for consumer electronic goods, forcing manufacturers to reduce production.Gizmochina brings you the best of Chinese Tech from emerging smartphone companies, innovative startups, to crazy smart home products and revolutionary technologies.

 

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