Do Samsung Profits Still Matter in 2023?

South Korean giant Samsung Electronics Co reported its sixth consecutive quarter of falling operating profits, underlining subdued consumer demand and fuelling uncertainty about a broader tech recovery timeline.

The company witnessed a 35% decline in operating income to 2.8 trillion won (US$2.1 billion), falling short of estimates by 24%. Moreover, revenue slid to 67 trillion won, a steeper plunge than projected. In 2023, Samsung recorded its thinnest operating profit in 15 years.

The performance highlights the stagnant demand for smartphones and memory chips, the driving force behind modern electronics due to economic uncertainty. This also clouds the prospects for a market recovery that many investors anticipated would surface in 2024.

In contrast, rival Micron Technology Inc. offered a stronger-than-expected revenue forecast in December, suggesting that data centre construction…