Samsung Electronics has reported its worst decline in quarterly revenue since at least 2009, stoking uncertainty over when a year-long electronics and memory chip demand slump will end.
The stock slid 2 per cent in Seoul, the most on an intraday basis in more than two months, after Samsung reported a larger-than-anticipated 22 per cent fall in sales to 60 trillion won ($46 billion).
Operating profit plunged 96 per cent to 600 billion won in the three months ended June despite surpassing average estimates.
Samsung has borne the brunt of a slowdown gripping the $160 billion global memory industry, reflecting a wider downturn after a coronavirus-era boom in online activity waned.
Inflation and recession fears last year triggered a rapid pullback in consumer and business spending that has since hammered sales of electronics worldwide.
Despite the disappointing top line number, investors remain cautiously optimistic that the memory chip glut is finally easing after more than a year of price declines.
Samsung rivals Micron Technology and SK Hynix have signalled that electronics companies are working through bloated stores of memory chips after the post-pandemic collapse in demand for smartphones and computers.
The industry has moved to shore up prices. Samsung said in April it was cutting production after reporting its slimmest profit in 14 years, a significant step towards ending the supply glut.
Micron said last week it had passed the low point of the current downturn while Hynix executives predicted some relief later this year, aided by a recovery in China and AI demand.
Last quarter was “the profit bottom for Samsung in the current memory down cycle”, CLSA analyst Sanjeev Rana said.
“We expect a sharp profit recovery in the second half as memory price declines are decelerating and demand is expected to recover.”
Samsung has been the biggest contributor to gains on South Korea’s benchmark Kospi index in 2023.
The country’s largest corporation will provide a business outlook when it reports full earnings – including net income and details on divisional performance – on July 27.
“We believe the worst quarterly loss from the semiconductor business was in 1Q [the first quarter of] 23,” Giuni Lee, analyst at Goldman Sachs, said in a report before the earnings release.
Samsung’s losses are expected to gradually shrink before the company turns a small profit in the fourth quarter, he said.
The price declines registered by dynamic random access memory (Dram) chips are expected to slow in the second half of the year as chip makers tighten supply.
Overall Dram prices are projected to fall by up to 5 per cent in the three months to September, after declining by as much as 18 per cent in the second quarter, according to market research company TrendForce.
Semiconductor exports are also picking up, with a 28 per cent drop in June compared with a sharper decline of 41 per cent in April.
The company also unveiled a plan last week to shore up its foundry business in a bid to narrow the lead held by Taiwan Semiconductor Manufacturing Company.
Samsung will introduce 2-nanometre production for mobile phone parts by 2025 and expand applications. It will also significantly increase output in Pyeongtaek, South Korea and the Texas city of Taylor.
While the glut may be easing, inventory levels throughout the industry remain historically high and the economic outlook is uncertain.
But investors are betting generative artificial intelligence will drive new demand for servers requiring next-generation Dram, or DDR5.
AI-enabling servers need at least four to six times more Dram capacity, compared with standard ones, according to the Goldman Sachs report.
Samsung is also struggling with a prolonged slump in the smartphone market. Its mobile shipments are estimated to have fallen by a quarterly 9 per cent between April and June, according to eBest Investment.
Samsung is banking on a foldable line-up to shore up its profitability, with plans to unveil the Galaxy Z Fold 5 and Flip 5 in late July.
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What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
The specs
Price, base: Dh228,000 / Dh232,000 (est)
Engine: 5.7-litre Hemi V8
Transmission: Eight-speed automatic
Power: 395hp @ 5,600rpm
Torque: 552Nm
Fuel economy, combined: 12.5L / 100km
The specs: 2019 Audi A7 Sportback
Price, base: Dh315,000
Engine: 3.0-litre V6
Transmission: Seven-speed automatic
Power: 335hp @ 5,000rpm
Torque: 500Nm @ 1,370rpm
Fuel economy 5.9L / 100km
The specs
Engine: 5.0-litre supercharged V8
Transmission: Eight-speed auto
Power: 575bhp
Torque: 700Nm
Price: Dh554,000
On sale: now
The%20specs
%3Cp%3E%3Cstrong%3EEngine%3A%3C%2Fstrong%3E%206.5-litre%20V12%20and%20three%20electric%20motors%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E1%2C015hp%0D%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E1%2C500Nm%20(estimate)%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%3C%2Fstrong%3E%20Eight-speed%20dual-clutch%20auto%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%3C%2Fstrong%3E%20Early%202024%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EFrom%20Dh2%20million%20(estimate)%3C%2Fp%3E%0A
TOURNAMENT INFO
Fixtures
Sunday January 5 - Oman v UAE
Monday January 6 - UAE v Namibia
Wednesday January 8 - Oman v Namibia
Thursday January 9 - Oman v UAE
Saturday January 11 - UAE v Namibia
Sunday January 12 – Oman v Namibia
UAE squad
Ahmed Raza (captain), Rohan Mustafa, Mohammed Usman, CP Rizwan, Waheed Ahmed, Zawar Farid, Darius D’Silva, Karthik Meiyappan, Jonathan Figy, Vriitya Aravind, Zahoor Khan, Junaid Siddique, Basil Hameed, Chirag Suri
UAE central contracts
Full time contracts
Rohan Mustafa, Ahmed Raza, Mohammed Usman, Chirag Suri, Mohammed Boota, Sultan Ahmed, Zahoor Khan, Junaid Siddique, Waheed Ahmed, Zawar Farid
Part time contracts
Aryan Lakra, Ansh Tandon, Karthik Meiyappan, Rahul Bhatia, Alishan Sharafu, CP Rizwaan, Basil Hameed, Matiullah, Fahad Nawaz, Sanchit Sharma
Meydan race card
6.30pm: Baniyas (PA) Group 2 Dh125,000 (Dirt) 1,400m
7.05pm: Maiden (TB) Dh165,000 (D) 1,200m
7.40pm: Maiden (TB) Dh165,000 (D) 1,400m
8.15pm: Handicap (TB) Dh170,000 (D) 1,900m
8.50pm: Rated Conditions (TB) Dh240,000 (D) 1,600m
9.25pm: Handicap (TB) Dh175,000 (D)1,200m
10pm: Handicap (TB) Dh165,000 (D) 1,400m
F1 The Movie
Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem
Director: Joseph Kosinski
Rating: 4/5
Players Selected for La Liga Trials
U18 Age Group
Name: Ahmed Salam (Malaga)
Position: Right Wing
Nationality: Jordanian
Name: Yahia Iraqi (Malaga)
Position: Left Wing
Nationality: Morocco
Name: Mohammed Bouherrafa (Almeria)
Position: Centre-Midfield
Nationality: French
Name: Mohammed Rajeh (Cadiz)
Position: Striker
Nationality: Jordanian
U16 Age Group
Name: Mehdi Elkhamlichi (Malaga)
Position: Lead Striker
Nationality: Morocco
Specs
Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request
THE%20STRANGERS'%20CASE
%3Cp%3E%3Cstrong%3EDirector%3C%2Fstrong%3E%3A%20Brandt%20Andersen%3Cbr%3E%3Cstrong%3EStarring%3A%20%3C%2Fstrong%3EOmar%20Sy%2C%20Jason%20Beghe%2C%20Angeliki%20Papoulia%3Cbr%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204%2F5%3C%2Fp%3E%0A
The specs
Engine: 2.0-litre 4-cylinder turbo hybrid
Transmission: eight-speed automatic
Power: 390bhp
Torque: 400Nm
Price: Dh340,000 ($92,579
UAE currency: the story behind the money in your pockets
The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
