While Samsung earlier this month warned that its earnings reports for Q1 of 2023 was going to be disappointing, no one predicted it to be as bad as it is. As a point of reference, Q1 of 2022 saw the tech giant make $10.7 billion in profit, whereas the final number for Q1 of 2023 is $478.55 million. That’s a 95% decrease year over year.
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What went wrong? Ars Technica reports that in 2022, 55% of the company’s profits were courtesy of the memory division, which happens to be the division that took a nosedive, resulting in a $3.4 billion loss. For perspective, Samsung’s display division made up 11% of the company’s profits in 2022. At the beginning of this month, Samsung announced that it would be halting it would be cutting memory chip production, a move that several major chip manufacturers have already made.