Samsung's quarterly profit falls to an eight-year low amid global economic slowdown

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• Jan 6, 2023 | Kabir Chakraborty

It should be noted that Samsung's quarterly earnings was the lowest since the third quarter of 2014, as the company struggled to generate profit across all of its core business sectors. color:black;mso-themecolor:text1">

color:black;mso-themecolor:text1">Digital Desk: The quarterly earnings of Samsung Electronics
Co fell to an eight-year low as the global economic recession depressed memory
chip prices and significantly reduced demand for electronic goods.

color:black">The South Korean multinational company, which is the world's top memory
chip, television, and smartphone manufacturer, revealed in a statement that its
operational profit for October-December plunged 69% to 4.3 trillion won from
13.87 trillion won the previous year.

Following the news,
economists predicted that Samsung's profit will fall again in the current
quarter since the global economic recession showed no indications of
improvement.

It should be noted that Samsung's quarterly earnings was the
lowest since the third quarter of 2014, as the company struggled to generate
profit across all of its core business sectors. In addition, the corporation
reported that its quarterly revenue declined 9% year on year to 70 trillion
won. 

Rising global interest rates and rising inflationary pressure have
badly harmed global demand for a wide range of electronic goods, particularly
smartphones, which are Samsung's mainstay in addition to semiconductors sold to
rival businesses such as Apple.

Not only Samsung, but technology businesses worldwide, are
experiencing difficulties as a result of the global economic slowdown and fears
of an oncoming recession. Due to the continuous slowdown in demand, some major
IT businesses have already resorted to drastic measures, such as mass layoffs,
to cut expenses.

With no signs of improvement in the global economy, analysts
predict that the global technology industry will face a lengthy difficulty,
potentially resulting in additional layoffs in the near future. color:black;mso-themecolor:text1">