Samsung Electronics is expecting a deficit in the second quarter

This article is translated by AI company Flitto and Alhpa Biz neural machine translation technology

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hoondork1977@alphabiz.co.kr | 2023-04-24 06:08:18

삼성전자 서초사옥. (사진=연합뉴스)

 

[Alpha Biz=(Chicago) Reporter Paul Lee] Some predict that Samsung Electronics, which posted operating profit of 600 billion won in the first quarter of this year due to a massive deficit in the semiconductor sector, will turn into a deficit in the second quarter of this year.

According to securities firms on the 23rd, many securities firms expect Samsung Electronics to record operating losses in the second quarter. 

 

Hi Investment & Securities forecast a deficit of 1.286 trillion won, SK Securities 600 billion won, eBEST Investment & Securities 400 billion won and Samsung Securities 279 billion won. If Samsung Electronics actually records a deficit, it will be the first time in 15 years since the fourth quarter of 2008, when it posted an operating loss of 940 billion won.

The reason for the negative outlook is a slump in the memory semiconductor market, and that the smartphone sector will inevitably see its earnings fall due to a decrease in the effect of releasing new Galaxy S23 products in the first quarter. 

 

Stock industry sources believe that Samsung Electronics posted operating profit of KRW 3.3 trillion in the smartphone sector and KRW 1 trillion in displays, although it posted a large deficit of around KRW 4.3 trillion in the semiconductor sector in the first quarter.

On top of that, Samsung Electronics is now in a position to pay 400 billion won in compensation to the U.S. semiconductor company Netlist for infringing on semiconductor technology patents. A jury of the Texas Eastern District Court ruled Samsung Electronics, "We should pay $303.15 million (about 403.7 billion won) for intentional infringement of the standard patent technology held by the Netlist," according to Reuters on the 21st (local time). The court confirms the size of the first trial and compensation by referring to the jury's verdict in the future.

 


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