Samsung Electronics reported today i financial results for the first quarter ended March 31, 2023. Global demand is expected in recovery as market conditions are expected to recover in the second half of 2023. Let’s look at them in detail.
What are the results achieved by Samsung in the first quarter of 2023?
The company has a consolidated turnover of 63.75 trillion KRW, a 10% decline from the previous quarter, as overall consumer spending slowed amid an uncertain global macroeconomic backdrop. Operating profit was KRW 0.64 trillion as the DS (Device Solutions) division faced a decrease in demandwhile profit in the DX (Device eXperience) division increased.
Samsung Display Corporation (SDC) reported a decline in earnings in the movable panel sector QoQ due to a market downturn, while the large panel sector trimmed its losses slightly.
The results of DX division improved on the back of strong sales of the serie premium Galaxy S23 and an enhanced sales mix focused on premium televisions.
In the second half of the year, based on the expectations of a gradual market recovery and a rebound in global demand, the DS Division will focus on high-capacity mobile and server products. The DS division will continue to strengthen its technology leadership by expanding customers for cutting-edge products based on the GAA process.
It is expected that the business of display of SDC will continue to lead the high-end market, while the large panel business will further expand into the premium market and improve profitability.
Samsung and the results of the first quarter of 2023: will it focus on displays to consolidate its market leadership throughout 2023?
SDC had a consolidated turnover of 6.61 trillion KRW and an operating profit of KRW 0.78 trillion for the first quarter.
For i displayalthough market demand continued to contract, SDC strengthened its market leadership thanks to theexpanding foldable phone modelsstrong sales of flagship products and dominance in the premium segment.
In the second quarter, the SDC expects a decline of results compared to the previous year due to the slowdown of the global economy which increases the seasonal effects.
In the second half of the year, while fears about market uncertainties and the economic recession persist, hopefully in a potential recovery in demand due to improved market conditions in China.
SDC aims to maintain its leadership in high-end smartphones by leveraging its differentiated technology into new offerings and expand sales by enhancing the performance of foldable products.
Samsung reported gains thanks to the success of Galaxy S23
The MX and Networks businesses had consolidated revenues for 31.82 trillion KRW and an operating profit of KRW 3.94 trillion for the first quarter. While demand across the global smartphone market declined, the premium market grew year-over-year.
The positive performance in the first quarter was driven by strong sales of the new Galaxy S23 seriesespecially its most premium model, the Galaxy S23 Ultra.
A second quarter is expected recovery of market demand in the medium-low segment, with a slight quarterly increase in market volumes and a decline in value.
In the second half of the year, the market for smartphone it is expected to increase in both volume and value amid signs of a global economic recovery. As a result, MX Business expects particularly strong demand in the premium segment.
Visual Display and digital devices: Samsung still focuses on Premium and Lifestyle products
The activities Visual Display e Digital Appliances of Samsung reported consolidated revenues for 14.08 trillion KRW and operating earnings of KRW 0.19 trillion for the first quarter.
While the question of televisions has declined due to the continued impact of the global economic downturn, the Visual Display Business recorded higher results both quarter-over-quarter and year-over-year by focusing on sales of high value-added products and reducing overall costs.
The sector Digital Appliances has registered earnings similar to the previous quarter due to slowing demand and continued cost burden.
In the second quarter, demand from the market as a whole is expected to contract at a more pace this compared to last year.
In the second half of the year, market demand is expected to gradually to recover due to seasonal spending trends, although ongoing external uncertainties could intensify competition within the industry.