This year has proven itself a difficult year for Samsung as the giant South Korean giant reported a steep decline in its revenue by an eye-watering 95 percent. The losses from both Q1 and Q2 2023—with the latter showing a 6 percent lower result—mark the company’s overall poorer performance this year compared to 2022.

While the company revealed a revenue amounting to KRW14.1 trillion, said to be a “12% increase from a year earlier,” via a newsletter, only a fraction of that stated revenue is the actual profit—or just KRW0.67 trillion—in the second quarter.

As a company renowned for its electronic and smart devices, one of the major causes for the loss in profits is believed to be its reduced global shipments of smartphones. The issue is only compounded by the galore of unsold chips that naturally led to lower prices. And at a time when the competition has been offloading copious numbers of hoarded chips from the pandemic in November 2022, Samsung choosing to resist until April 2023 ushered the company to miss a great window of opportunity in terms of sales of essential hardware.

Samsung remained optimistic in the second quarter, however, as it launches its latest flagship, the Samsung Galaxy S23. Its anticipated release gave rise to expectations of its total sales potentially covering the loss of income of the quarter prior. However, due to unfavorable global factors including inflation and high-interest rates, interest in the device has rapidly evaporated among consumers.

Despite the poor performance in sales, the South Korean giant is not held back, though, with positive prospects arising once again with the recent launch of the Samsung Galaxy Z Flip5 and Galaxy Z Fold5, touted for setting the “new standard of smartphones.”

This article, Samsung reports 95% drop in profits in Q2 2023, was originally published at NoypiGeeks | Philippines Technology News, Reviews and How to’s.