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Samsung Profits Plunge As Demand For Gadgets Slows

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Samsung's earnings in the final three months of 2022 to decline by 69% to its lowest in the past eight years.

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The biggest manufacturer of smartphones, memory chips and TVs predicted its operating profit in the first quarter fell to approximately 4.3tn won ($3.4bn; PS2.8bn)

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The global economic downturn has harmed the prices of memory chips and increased demand for electronic devices.

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Global tech giants have been stung in recent months as consumers are putting their money where their mouths are.

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Samsung's fourth quarter was its lowest earnings since 2014, and it did not meet investors' expectations of about 5.9 trillion won.

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A South Korean company said it observed a larger-than-expected decline in the demand for computer chips as users reduced their stock of the most important components of digital devices.

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"For the memory business, the decline in fourth-quarter demand was greater than expected as customers adjusted inventories in their effort to further tighten finances," Samsung stated in its statement.

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"Smartphone sales and revenue decreased due to weak demand resulting from prolonged macro issues," the report said.

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