Business Development Science and Technology

Samsung chief forecasts tech weakness in 2023

Samsung exhibition stand

By Joseph Waring

Samsung Electronics co-chief predicted a spike in interest rates and inflation would weigh on demand for consumer products in 2023, but noted the decline would likely begin to ease in the second half of the year, The Wall Street Journal (WSJ) reported.

Vice chairman and co-CEO Han Jong-hee told the newspaper the company sees the economic downturn as an opportunity to better integrate its range of connected devices with user-friendly software.

Han took the helm of the newly created DX division, which combined its IT and Mobile Communications (renamed MX) and Consumer Electronics groups, in December 2021.

He said the merger aligned the two groups with the goal of developing connected products that seamlessly work with each other, WSJ wrote.

At CES in Las Vegas this week, the vendor unveiled a smart-home hub that lets users remotely control devices around the house such as lights, locks, and air conditioners. Customers can use their Galaxy handset or tablet to connect to the SmartThings Station, which will first launch in South Korea and the US in February. The hub also can be used as a wireless charger.

The company’s Q4 profit is expected to drop 58 percent year-on-year to KRW5.9 trillion ($4.6 billion), hitting a six-year low, as prices of memory chips drop, Reuters reported, citing Reinitiv SmartEstimate data from 21 analysts.

In its Q3 earnings call in October, the company warned continuing macroeconomic instability could put downward pressure on ASPs. The company’s Q3 net profit dropped 23.6 percent to KRW9.4 trillion, while revenue growth slowed to 3.8 percent.

 

About the Author

Joseph has covered the Asian market for Mobile World Live since August 2014. Before joining the GSMA, Joseph was group editor for Telecom Asia for more than ten years. In addition to writing features, news and blogs, he drove the overall editorial strategy for the flagship print publication as well as regular print/online supplements and newsletters. He successfully guided the publication through a shift in business model, as the majority of Telecom Asia’s advertising revenue became generated from online services rather than print. He also worked for more than two decades in Asia as an editor for business publications and websites, with experience at a web startup in 2000, R&D Magazine, Global Sources and the Bangkok Post. @telecomwaring

SOURCE: MOBILE WORLD LIVE

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