As the global IT boom declines amid growing prices and economic uncertainty, Samsung Electronics’ run of reporting record results is likely to come to an end.
Recently, the South Korean tech giant, anticipated an increase in operating profit of 11.4% from the same period last year.
Revenue growth over the previous year is anticipated to be 20.9% for the months of April through June.
Government stimulus programs and adjustments from the epidemic era helped Samsung, which saw a substantial increase in demand for its memory chips, cellphones, and televisions.
However, when consumers cut back on spending as the price of basic necessities rises, demand across the tech sector is starting to decline from such furious levels.
Samsung reported its highest-ever quarterly sales of 77.8 trillion won in the first few months of 2022 while operating profits increased by 50%.
The value of the company’s shares has decreased by about 28% from the year’s beginning.
Samsung will provide its full results in a later month. For the quarter that concluded on June 30, it anticipates an operating profit of 14 trillion South Korean won, or about USD 10.7 billion.
This is in contrast to the 12.6 trillion won for the same quarter last year. According to the corporation, revenue will increase to 77 trillion won from 63.7 trillion won in the previous year.
S&P Global Market Intelligence’s survey of analysts found that they anticipated 14.6 trillion won in operating profit and 76.9 trillion earned in total sales.
Due to its dual role as a producer of electronics and a supplier of parts to competitors like Apple Inc., Samsung, the world’s top manufacturer of semiconductors and smartphones, is regarded as a bellwether for the tech sector.