In response to the general slump in the phone market, Samsung’s financial division is said to have ordered a comprehensive revision of its business strategy and a review of the TV sector, where LG easily outperformed Samsung. According to The Elec, the modification is ordered in the customarily slow and tedious second quarter.
Samsung is purportedly planning the announcement of its 2023 foldables far earlier than usual in order to offset the Q2 performance forecast. The Galaxy Z Fold 5 and Z Flip 5 Unpacked event could occur as early as July 19 or July 26, and they’re expected to be launched on August 4 or August 11.
Since the market for computers is in a post-pandemic slump and Samsung’s clients are still working through a sizable inventory build-up they amassed during the supply chain crisis in the previous couple of years, Samsung’s financial woes are primarily the result of its previously high-flying chip business, which recorded its first loss in 14 years.
In contrast, the Device Experience (DX) division saw a respectable gain in its year-over-year profitability of $262 million. Along with smartphones, it also houses businesses for TVs, household appliances, and networks. More closely, Samsung’s phone and network divisions managed to earn 3.94 trillion (about $3 billion), an actual $90 million gain from the Galaxy S22 launch period last year. This is the result of the launch of the Galaxy S23 Ultra, which is the most technologically advanced Android phone available. It has a 200MP main camera, an S Pen silo, and a 10x periscope zoom. Still, the sales performance wasn’t enough to cover the profit decrease from Samsung’s TV or home appliances business in Q1.
It will be interesting to observe how Samsung’s phone business evolves. Hopefully, any eventual cost reductions won’t limit the company’s capacity for innovation.
