Samsung Electronics (KRX: 005930) reported a decline in revenue for the first quarter ending March 31, 2023.
Consolidated revenue was KRW 63.75 trillion, down 10% from the previous quarter. The decline was attributed to the slowdown in overall consumer spending amid an uncertain global macroeconomic environment.
The DS (Device Solutions) business faced decreased demand, resulting in an operating profit of KRW 0.64 trillion.
Weak demand in the memory business, declining capacity utilization in the foundry business, and ongoing customer inventory adjustments contributed to the decline.
On the other hand, the DX (Device eXperience) Division posted improved results due to strong sales of the premium Galaxy S23 series and a focus on premium TVs.
The strength of the Korean won against the U.S. dollar, euro, and other major emerging currencies negatively impacted companywide operating profit by approximately KRW 0.7 trillion, primarily in the components business.
In the year's second half, the DS Division will focus on strengthening its technological competitiveness, including the 2-nanometer (nm) Gate-All-Around (GAA) process and meeting demand for DDR5, LPDDR5x, and other high-end products.
The DX Division aims to maintain profitability by expanding sales of the Galaxy A series of smartphones and new TV models and improving cost efficiency.
In the second half of 2023, Samsung expects the market to recover gradually and global demand to increase.
The DS business will focus on high-capacity server and mobile products. In contrast, the DX business will solidify its leadership in the premium segment, including foldable smartphones and Neo QLED screens.
The company's total capital expenditures for the first quarter were KRW 10.7 trillion, of which KRW 9.8 trillion was for semiconductors and KRW 0.3 trillion for displays.