Samsung has been struggling over the past few months, and in Q2 2023, the company faced a 95% drop in profits for the second quarter in a row.
In its Q2 2023 financial results, Samsung confirmed that profits dropped by 95%. This happened previously in Q1, which saw the same 95% drop year-over-year. Operating profit during the quarter was just KRW 0.67 trillion ($523.5 million), down from KRW 14.12 trillion ($11.06 billion) last year.
Samsung places the blame on this drop on the continuing decline in smartphone shipments, including with the boost that Galaxy S23 Ultra gave last quarter now having “faded.”
Sales decreased sequentially for the MX Business as the effect of the Galaxy S23 launch from Q1 faded. Mass market recovery was also delayed due to the continued economic downturn, affecting Q2 sales. Nevertheless, the Galaxy S23 series was able to achieve higher results than its predecessor in the first half, in terms of both volume and value.
The company cites Galaxy Z Fold 5 and Flip 5 as bright spots and expects the “overall smartphone market… to return to year-on-year growth, especially in the premium market.”
Of course, much of the issue that the declining smartphone market is having on Samsung isn’t from the company’s own Galaxy devices directly. Samsung Electronics supplies much of the memory and storage for other smartphone makers and displays, too, through Samsung Display. As smartphone shipments as a whole drop, Samsung is feeling the squeeze there too.
Pre-orders for Samsung’s new devices are open now, with deals that include up to $1,000 off from Samsung and carriers. See our coverage below for the best pre-order offers on Galaxy Z Flip 5, Fold 5, and Watch 6.
More on Samsung:
FTC: We use income earning auto affiliate links. More.
