The preliminary results for Samsung Electronics’ Q4 2022 earnings guidance are not promising. Estimated consolidated operating profit for the Korean phone manufacturer’s October-December quarter was $3.38 billion. This is the business’s lowest operational profit since 2014 and 69% below Q4 2021.
Estimates for quarterly revenue have decreased by 9% to $55 billion. The decline in demand for smartphones and memory chips is primarily to blame for Samsung’s financial difficulties. Due to the same circumstances that caused this quarter’s declines, analysts anticipate declining profitability in the first quarter of 2023.
Later this year, the newest Z series foldables are also anticipated to debut. The Galaxy Z Fold 5 and Z Flip 5 should be included in this. In contrast to the Z Fold 4, the Galaxy Z Flip series has been successful due to its more affordable price and well-known design. Millions of these phones were sold last year and in 2021 all over the world.
However, given the worldwide economic slump, even these sales might not be sufficient to turn things around. As a result, many businesses were compelled to lay off thousands of workers and implement other cost-cutting measures. Many people speculate that the lack of vapour chambers in Samsung Galaxy S23 phones simply represents a cost-cutting measure. In the upcoming month or so, we’ll learn more.