Samsung Electronics warned smartphone shipments and ASPs would decline in the current quarter but forecast a rebound in demand in the second half, with an expected global economic recovery.
On an earnings call, VP of the Mobile eXperience (MX) division Daniel Araujo said the smartphone market is expected to grow in volume and value in H2, particularly the premium segment, as the economy improves and inflation eases.
The tablet and wearables markets are forecast to remain flat.
Despite a predicted recovery in demand in the low- and mid-tier segments, the smartphone market will remain weak in Q2, Araujo said.
Revenue from its MX and Networks division declined 2 per cent year-on-year in Q1 to KRW31.8 trillion ($23.7 billion). Operating profit was stable at KRW3.9 trillion.
Araujo said smartphone demand weakened but the premium market grew.
Smartphone shipments dropped 18.9 per cent to 60 million units, with the ASP increasing 16.9 per cent to $325.
Tablet shipments fell 12.5 per cent to 7 million units.
Samsung followed rival SK Hynix in forecasting a gradual recovery in demand for memory chips in H2, with inventory levels expected to normalise.
It said demand from the mobile sector is likely to recover on a rebound in global sales and “revitalisation” of the Chinese market.
Net profit fell from KRW11.3 trillion in Q1 2022 to KRW1.6 trillion, with revenue down 18 per cent to KRW63.8 trillion, impacted by declining memory prices and weak demand.
R&D expenses rose 11.1 per cent to KRW6.7 trillion.Subscribe to our daily newsletter Back