[Core Information 04.08]Samsung's profits have plummeted, and it is finally time to reduce production and storage! (2023/4/8 11:44:56)
According to IT Home, Samsung Electronics announced its first quarter results on Friday, with operating profit expected to plummet by 95.8%, lower than analysts' expectations. Due to the worsening situation of chip oversupply, buyers are slowing down their purchases in the context of a global economic slowdown.
Samsung Electronics expects its operating profit to be 600 billion Korean won in the first quarter of 2023, a year-on-year decrease of 95.8%; The sales revenue was 63 trillion Korean won, a year-on-year decrease of 19%. Samsung Electronics stated that the company will "meaningfully" reduce chip production.
2. MCU inventory pressure is still ongoing, and it is expected that the economy will gradually rebound in the second quarter
According to the Taiwan, China Electronic Times quoted by the Science and Technology Innovation Board Daily, due to poor demand in the terminal market and high inventory in 2023, most MCU manufacturers are still under pressure to cut prices. At present, MCU manufacturers are still destocking, and it is estimated that the first quarter will be the bottom of the boom, and the second quarter will gradually rebound.
3. Storage is facing a surge of orders, with some companies experiencing a 20% increase in order volume
According to the Taiwan, China Economic Daily quoted by the Science and Technology Innovation Board Daily, recently the downstream of memory chips continued to digest the inventory, and the production reduction of large factories has almost been "irreducible". In addition, Samsung also reported that it intended to regulate production capacity, which may lead to the rebound of storage prices at any time. Therefore, there is a large amount of gas buying at low prices, and related manufacturers have ushered in a rush of orders. Licheng stated that customers are starting to increase their order strength, and this year's situation will be better than expected; Qunlian also revealed that customers replenished their inventory in advance, resulting in a significant increase in order volume of about 20%.
4. Global first quarter laptop shipments decreased by nearly 40% year-on-year
According to a report from IT Home, research firm TrendForce Consulting released a report that global laptop shipments in the first quarter of 2023 were approximately 33.9 million units, a decrease of 13% month on month and 39% year on year. This is mainly due to the continued impact of economic weakness on consumer market confidence, dragging down the progress of channel laptop machine localization, and further prompting brands to lower OEM orders to effectively regulate inventory pressure.
In the second quarter, with the expectation that the inventory pressure on laptop machines and components will ease, the demand for channel replenishment is expected to increase month by month, while driving the shipment volume of laptops in the second quarter to 37.63 million units, an increase of 11% month on month, but still declining by 18% compared to the same period last year. The delayed recovery after the epidemic may lead to a further decline in shipments in 2023, with the annual recession rate converging to 13%.
5. Samsung's profits plummeted by 92% in the first quarter, or it may reduce production and storage
According to KuaiTech, Reuters reported that Samsung Electronics' first quarter profit is expected to plummet by 92% to its lowest level in 14 years, due to worsening chip overcapacity and buyers such as data centers and computer manufacturers slowing down their purchases in the global economic slowdown. Samsung's chip division may report a quarterly loss of over 3 trillion Korean won, with particularly low revenue from storage chips.
TrendForce previously reported that DRAM memory prices plummeted by about 20% this quarter, while NAND flash memory prices fell by about 10% to 15%. According to Korean media reports, Samsung Electronics is considering reducing production to cope with the sluggish market situation. The market expects that Samsung's production reduction will help accelerate the improvement of memory market conditions.