Why are Samsung's profits plunging?
07/29/2023 •
Samsung's profits are primarily plunging due to the chip glut and declining demand for phones and memory chips. — Most of the commenters attribute the plunge in Samsung's profits to an ongoing chip glut and declining demand for their products, indicating that these are the main reasons.
Stats
| 33% | 149 | Mastodon |
| 30% | 133 | |
| 21% | 95 | |
| 8% | 36 | Hacker News |
| 5% | 23 | 4Chan |
| 2% | 9 | Bluesky |
| 44% | Negative |
| 42% | Neutral |
| 14% | Positive |
| 43% | 😱 Fear |
| 35% | 😢 Sadness |
| 16% | 😡 Anger |
| 3% | 😃 Joy |
| 3% | 😯 Surprise |
| 0% | 🥰 Love |
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Story
- Commenters attribute Samsung's plunging profits to constant US meddling in supply chains over US claimed intellectual property rights on the coating of some screws for "national security reasons". They argue that this has negatively impacted Samsung's business and favored Samsung's main rival, Apple.
- Samsung's profits are believed to be affected by the ongoing tech war between western-aligned companies and China, with some suggesting this war could negatively impact more companies in the future.
- Some suggest Samsung's reduced profit is largely in line with forecasts due to an ongoing chip glut, which has driven large losses in the tech giant's key business.
- The declining demand for phones and memory chips is highlighted as a reason for Samsung's plunging profits, indicating Samsung's competitive disadvantage.
- Some commenters argue that the cyclical nature of Samsung's revenue is the primary cause of the profit drop, rather than a collapsing economy or internal company issues.
- Samsung's memory chip division, accounting for 55% of sales, is pointed out as suffering losses, largely contributing to their plunging profits. Overproduction due to a previous chip shortage is also highlighted.
- Some are skeptical about Samsung's foldables being a success given their plunging profits, while others remain optimistic despite these challenges.
- It's believed that Samsung is losing to its competitors, as suggested by the notable profit drop of the company compared to other firms.
- Some people argue that the US regime forced Korean and Japanese suppliers to hand over critical internal data or face sanctions, further exacerbating the situation for Samsung.
- Wall Street analysts view Samsung's profit drop positively, focusing on production cuts as a potential benefit.