SEOUL — Samsung Electronics Co.’s string of record results is expected to end, as the global tech boom slows amid rising inflation and economic uncertainties.
On Thursday, the South Korean tech giant — which had reported record revenues in the past three straight quarters — forecast a 11.4% rise in second-quarter operating profit from the prior year. Revenue for the April-June period is expected to increase year-over-year by 20.9%.
benefited from pandemic-era shifts and government stimulus that created a huge appetite for the company’s memory chips, smartphones and televisions. But demand across the tech industry is beginning to fall from those ferocious levels, as consumers trim spending as the costs of many essential items soar.
In the opening months of 2022, Samsung posted its highest-ever quarterly revenue of 77.8 trillion won, while operating profits grew 50%. The company’s shares have fallen roughly 28% since the start of this year.
Samsung reports full results later this month. It expects second-quarter operating profit of 14 trillion South Korean won, roughly equivalent to $10.7 billion, for the quarter ended June 30. That compares with 12.6 trillion won for the year-earlier quarter. Revenue is forecast at 77 trillion won, up from the prior year’s 63.7 trillion won, the company said.
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