Samsung's profits fall 95% due to falling chip prices

Samsung profit falls in the first quarter of 2023 as memory chip prices continue to fall and demand remains weak. South Korean electronics giant Samsung’s operating profit fell in the first quarter as memory chip prices continued to fall and demand remained weak. The company had revenue of 63.75 trillion Korean won (about $47.6 billion). That was the same as Samsung’s own estimate of about 63 trillion Korean won, according to market estimates, but below the 63.9 trillion won that analysts had expected. The company’s operating profit came in at 640 billion Korean won (about $478.55 million), down from 14.12 trillion won a year earlier. The company released a report earlier this month saying its first-quarter profit would be 600 billion Korean won, its lowest operating profit since the first quarter of 2009. Samsung said it would make a "meaningful" cut in memory chip production, following smaller rivals such as SK Hynix and Micron, after predicting a big drop in profits earlier this month.