A pandemic-driven growth has dampened demand for the majority of consumer products due to a global economic slowdown and high interest rates, forcing chipmakers to reduce production in an effort to stop falling prices.
However, experts predicted that in the fourth quarter, Samsung’s storage chip business lost about$ 3 trillion as it continued to reduce production of older tradition chips while concentrating on more lucrative, high-end cards like DRAM cards used in artificial intelligence.
Additionally, Rival Micron Technology predicted a quarterly loss last quarter, raising worries about an uneven treatment in the end markets of the memory chip maker, such as data centers.
However, prices of NAND Flash chips used in information storage does began recovering as early as the latest quarter, bringing an end to the extreme industry downturn that started last year, according to analysts. Prices of DRAM chips for tech devices started rebounding near the end of next quarter.
Given that Samsung launches its lineup smartphones in the second quarter, which is typically strong for its smart and screen businesses, and demand for display panels from customers like Apple increases prior to the release of the most recent iPhone.
According to Samsung, its revenue likely decreased by 13 % from the same period a year earlier to 67 trillion.
On October 31, the firm is scheduled to release specific earnings.