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Just ahead of Galaxy S23 launch, Samsung expects dip in smartphone demand
- Samsung has posted weak profit numbers for the fourth quarter of 2022 due to low chip demand, economic uncertainties, and customers buying fewer new gadgets.
- The company expected demand for smartphones to decrease across all segments even though it’s on the brink of launching the new Galaxy S23 series.
Back in January, Samsung had projected a profit decline for the fourth quarter of 2022, and now, the company has posted actual numbers that show just how bad business has been for the world’s largest smartphone maker. The biggest loser was Samsung’s chip division, which saw profits plunge more than 90% in the three months ended December.
Over at the smartphone division, Samsung is not expecting consumer demand to pick up before the second half of the year.
Samsung says smartphone demand will continue to decrease across all segments.
“Market demand for smartphones remained weak in the fourth quarter, with the mass market contracting sharply due to continued inflation and geopolitical instability,” Samsung reported. The company saw a decline in sales and profit in the last quarter “due to fading new-product effects of flagship models and a drop in smartphone sales on weak demand from the economic slowdown.”
Samsung says smartphone demand will continue to decrease across all segments for a while due to macroeconomic uncertainties. However, it hopes to expand sales in the first quarter of 2023 using the Galaxy S23 series and an enhanced product portfolio, including new PCs, wearables, and tablets. Does that mean we’ll see the Galaxy Watch 6 launch earlier than usual this year? We’ll have to wait and watch.
In the meantime, Samsung also plans to push its lineup of 200MP image sensors to major smartphone OEMs launching flagship models. The company also plans to collaborate with mobile carriers on various sales programs, including those aimed at expanding the 5G smartphone user base. Additionally, it intends to introduce upgrades and improve multi-device capabilities on its upcoming wearables and tablets.