Samsung has reported its earnings for Q2 2023 that ended June 30, 2023 in which the company posted 60.01 trillion won (USD 46.95 billion approx.) consolidated revenue, down 6% YoY. This is due to decline in smartphone shipments, despite a slight recovery in revenue of the DS (Device Solutions) Division.
It made an operating profit of 0.67 trillion won (USD 527 million), up 4.68% QoQ as the DS Division posted a narrower loss, while Samsung Display Corporation (SDC) and the Digital Appliances Business saw improved profitability, but down 95.24% YoY which is almost same as the 95.4% YoY decline in Q1 2023.
Samsung MX (Mobile eXperience) in Q2 2023
The MX and Networks businesses posted 25.55 trillion won in consolidated revenue, down 12.91% YoY. The division posted 3.04 trillion won in operating profit, up 16% YoY, but down 22.84% QoQ.
Samsung said that overall market demand for smartphones weakened sequentially due to continued effects of macro factors, such as interest rates hikes and inflation.
Sales decreased Q-Q due to waning effects of the S23 launch and a delayed recovery of the mass market.
However, Samsung said that it maintained solid sales of the S23 series throughout 1H and improved model mix via upselling within the A Series focusing on sales of newly released models.
The MX Business’s efforts to optimize operational efficiencies throughout R&D, manufacturing, and logistics, underpinned by stabilized prices of major raw materials, led it to maintain a double-digit margin.
Samsung MX H2 2023 Outlook
For the second half of 2023, Samsung expects the overall smartphone market to return to year-on-year growth, especially in the premium market.
However, external forecasts for market growth have also been lowered, amid risks of a prolonged global economic downturn.
Regarding tablets, the overall market is expected to stay mostly flat, but the high-end segment is projected to increase.
The MX Business will focus on the newly launched Galaxy Z Flip 5 and Galaxy Z Fold 5 series. For the Galaxy S23 and Galaxy A series, the MX Business plans to enhance sales through close collaboration with its partners and sales programs tailored by region.
The MX Business will also focus on boosting sales of its tablets and wearables, with a strong focus on its new high-end models, which were announced this week at the Galaxy Unpacked event.
Through such activities and initiatives, the MX Business intends to grow its annual revenue in 2023, while securing sold double-digit profitability through enhanced operational efficiency.