Samsung Electronics announced its Q2 2023 financial results. The company posted quarterly revenue of 60.01 trillion won ($46.9 billion), a 6% decline from Q1 2023. Samsung increased its operating profit as the Device Solutions (DS) Division minimized its losses and as Samsung Display and the Digital Appliances Business improved profitability. The tech giant posted an operating profit of 0.67 trillion won ($523 million).
Samsung says its mobile business in Q2 posted 25.25 trillion won ($19.9 billion) in consolidated revenue and 3.04 trillion won ($2.3 billion) in operating profit. Sales decreased in the second quarter as demand for the Galaxy S23 faded compared to Q1, but also because the continued economic downturn affected Q2 sales.
Even so, Samsung claims that despite the economic climate, the Galaxy S23 series achieved better results than the Galaxy S22 did in the first half of the year in terms of both value and volume.
The tech giant expects the smartphone market (especially the premium segment) to return to year-on-year growth in the second half of 2023. Samsung says it will focus on the new Galaxy Z Fold 5 and Galaxy Z Flip 5 to further fortify its leadership over the global smartphone segment.
The two new foldable phones were announced at Galaxy Unpacked in Seoul on July 26.
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Further memory production cuts in H2
In Q2 2023, Samsung's Device Solutions (DS) division posted 14.73 trillion won ($11.5 billion) in consolidated revenue and 4.36 trillion won ($3.4 billion) in operating losses.
Samsung says its memory business achieved its bit growth guidance as more limited price cuts for NAND and DRAM led to quarter-on-quarter improvements.
According to the company, the memory market could gradually stabilize as customers' inventory adjustments could wind down and production cuts across the industry could increase.
Samsung Display improves large panel production
Samsung Display posted 6.48 trillion won ($5 billion) in consolidated revenue and 0.84 trillion won ($656 million) in operating profit.
In the mobile panel segment, Samsung achieved results similar to Q1 and maintained its market share. However, the company enhanced the yield and productivity of large panels.
SDC expects earnings to improve in the second half of 2023, as mobile panel customers (like Apple) are expected to release new products. Samsung Display will also develop technologies to lead the emerging Extended Reality (XR) market.
