Samsung Electronics posted shocking results in the first quarter of 2023, with operating profit falling below 1 trillion won due to continued sluggish IT demand.

Samsung Electronics disclosed its operating (provisional) results based on consolidated financial statements for the first quarter of 2023 on the 7th.

According to this, sales recorded 63 trillion won, a 19% decrease compared to the same period last year, and operating profit was 600 billion won, a 95.75% decrease compared to the same period last year.

In response, the company stated that overall company performance declined significantly as results deteriorated primarily in the components sector due to the continued sluggishness in IT demand.

Memory fell sharply due to declining demand resulting from macroeconomic conditions and slowing customer purchasing sentiment, as well as continued inventory adjustments by many clients aimed at improving their financial health.

In addition, performance in system semiconductors and SDC also declined due to the economic downturn and off-season.

A company official stated that while short-term production plans have been lowered, robust demand is expected in the mid-to-long term, so the company plans to continue infrastructure investment to secure essential cleanrooms and expand the proportion of R&D investment to strengthen technological leadership.