According to the data emerging today, Samsung is experiencing the worst period of the last 15 years. Operating in almost the entire technology sector, from television to panel production, from processors to computers and smartphones, which are very popular in Turkey, the company lost 96 percent of its operating profit.
How it happened: Samsung’s profit fell 96 percent!
Samsung experienced a decline that no one expected in the second quarter of 2023. The company’s net profit has never dropped this much since its $567 million closing in 2008. Compared to last year, it is experiencing a loss of 96 percent.
The company announced that it made a profit of 11 billion dollars in the same period of 2022 (between April and June). This year, however, it only reached 427 million dollars with a historical record decrease of 96 percent. So why did this decline occur when everything seemed to be going well?
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Although there are several different reasons for this situation, there is an abundance of chips that stand out among them. Especially during the pandemic period, when there was a chip crisis, there was an understanding of blowing the whistle that gave the money. However, this resulted in tens of billions of dollars of investment.
Now, unlike the past years, there is an abundance of chips in the market. This means that Samsung, one of the world’s largest chip manufacturers, cuts its profit margin at a terrifying level, so to speak, sells it on arrival.
Moreover, this abundance will continue until the end of the year. Therefore, the company will have to wait until 2024 to recover its financial statement. However, as a result of this situation, we can say that Samsung has increased its investments in different fields, especially in artificial intelligence.
Of course, we can say that things are relatively better in the phone department. Because, operating profit in this field has reached the level of 2.5 billion dollars. However, the company’s overall operating profit fell to $567 million, the lowest level in the last 15 years, causing great unease among shareholders. This directly affected the stock market value.
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