Samsung's profits plunged 69% in Q4 2022

The weakest quarterly profit in 8 years

The global economic crisis hit demand

Samsung Electronics Co Ltd is expected to post its lowest quarterly profit in 8 years as it is affected by the weak global economy.

The South Korean tech giant announced operating profit for the October to December 2022 quarter is likely to plunge 69% to $3.37 billion from $10.9 billion a year ago.

The figure marks Samsung's smallest quarterly profit since the third quarter of 2014 and fell far short of Refinitiv SmartEstimate's forecast for revenue of $4.67 billion.

According to Samsung's earnings statement, it forecast quarterly revenue to fall 9% from the same period last year to $55.4 billion.

Even so, the leading South Korean company will release detailed earnings on January 31.

This gloomy projection, also indirectly paints a similar picture for the quarterly results of other technology firms.

Weakness in the global economy due to rising interest rates and the cost of living has affected memory chip prices and curbed demand for electronic devices.

The streak is also, analysts project that Samsung's profits will also decline in the current quarter (January-March 2023).

In Friday's morning trading session, Samsung shares rose 1% while shares of rival memory chip maker SK Hyix bounced 1.6%.