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 Entrepreneur.com. 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.

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