Samsung Electronics said on April 27 that the company recorded sales of 63.75 trillion won and operating profit of 640 billion won based on consolidated results for the first quarter of 2023.
The DS division in charge of the semiconductor business recorded sales of 13.73 trillion won and an operating loss of 4.58 trillion won. High inventory levels of servers and other equipment of clients had brought a negative impact to Samsung's semiconductor businesses including DRAM (Dynamic Random Access Memory) chips. Samsung quickly responded to the global high-capacity NAND memory chip demand and the bit growth rate, the production rate converted into bits, exceeded market expectations.
Samsung's system LSI division's performance declined in the first quarter due to the sluggish performance of major clients including home appliance makers and smartphone makers who had less demand for products such as System on Chip (SoC), sensors, and Display Driver Integrated circuits (DDI). Samsung's foundry also suffered a hit from reduced demand triggered by the global economic slowdown and a decrease in orders due to increased customer inventory, Samsung explained. The DX division recorded sales of 46.2 trillion won and an operating profit of 4.21 trillion won.
The MX division in charge of the mobile business saw an increase in sales and a recovery in profitability thanks to strong sales of the Galaxy S23 series compared to the previous quarter. The VD division in charge of TVs focused on selling premium TVs and cutting operating costs to improve profitability.
The home appliances sector continued to struggle with weak demand and cost pressures, resulting in performance similar to the previous quarter. The display sector's performance deteriorated in the small and medium-sized panel categories due to market contraction. The deficit was reduced with the launch of new Quantum Dot organic light emitting diode (OLED) products in the large panel category.
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