Samsung's Profit Is Down 95% — Now the Apple Rival Is Relying on an 'Unusual' Strategy to Recover The company's memory chip division saw a record $3.4 billion loss.

By Amanda Breen

entrepreneur daily
picture alliance | Getty Images

It continues to be a tough time for tech companies — even the giants.

Samsung Electronics Co.'s profits are officially down 95% for Q1 2023; the company saw 14.12 trillion Korean won ($10.7 billion) in profit for Q1 2022 and just 640 billion won ($478.55 million) this past quarter, Ars Technica reported.

Related: 5 Things Tech Employers Can Do to Mitigate Employee Fatigue

A major contributor to the slump? The company's memory chip division posted a record $3.4 billion loss amid the $160 billion dip in the global memory industry, per Bloomberg. According to the outlet, the company's semiconductor division is typically its largest, and the staggering drop in Q1 was "unprecedented."

The company plans to reduce its memory production by a "meaningful" amount to safeguard against an approximately 70% fall in prices over the past nine months, per The Verge. But, in what Bloomberg calls an "unusual move," Samsung doesn't intend to slash its investment in memory chips in a bid to maintain its long-term competitiveness.

Related: Why The Demand for Tech Jobs Will Only Get Stronger | Entrepreneur

Samsung is still banking on the semiconductor industry, and its outlook on PC and phone demand is also optimistic. "In the second half, the smartphone market is expected to increase in both volume and value amid signs of a global economic recovery," it said in a statement.
Amanda Breen

Entrepreneur Staff

Features Writer

Amanda Breen is a features writer at She is a graduate of Barnard College and received an MFA in writing at Columbia University, where she was a news fellow for the School of the Arts.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Related Topics

Business Ideas

Here's How the Entrepreneur Behind Carvana Got the Idea That's Revolutionizing the Way We Buy Cars

'If nobody thinks you're crazy, you probably aren't on to anything truly novel.'

Health & Wellness

Get Healthy with Jillian Michaels While Her Fitness App Is on Sale for Hundreds Off

Don't let your health and wellness slip through the cracks.

Starting a Business

This Is How Entrepreneurs Can Achieve Financial Fitness

Entrepreneurs aiming for financial fitness, akin to physical training, must focus on bootstrapping — a process of self-funding a business.

Starting a Business

This Retiree's Leisurely Side Hustle Makes $66,000 a Year and, 'You Don't Even Need to Go to High School to Do It'

Barbara Hill wanted a flexible, part-time job that would transition well into retirement. Now she mentors younger people who are making over $200,000 a year. Here's her insider's guide to getting started.


This 'Clairvoyant' Thought Exercise Can Help You Make the Right Choice in Just Seconds, Says Google's Former Chief Decision Scientist

Cassie Kozyrkov, leader in decision intelligence and CEO of Data Scientific, delves into effective decision-making and its role amid the rapid advancement of AI.