Samsung’s MX division shows resilience in Q2 earnings amid chip biz losses

[Photo by Yonhap]

Samsung Electronics Co.’s preliminary earnings for the second quarter announced on Friday reveal a continuation of the mobile experience (MX) division’s ability to offset the significant losses in the semiconductor sector, following a similar trend observed in the first quarter.

However, analysts project a decline in the operating profit of the MX and network divisions, which reached 4 trillion won ($3.06 billion) in the first quarter, saying it may dip to the upper 2 trillion won range as the impact of the Galaxy S23 series launched in February gradually diminishes.

Samsung Electronics announced in a public disclosure that its operating profit came to 600 billion won for the second quarter of this year, marking a 95.7 percent plunge from a year earlier. This represents the company’s lowest level of operating profit in over 14 years since the 590 billion won recorded in the first quarter of 2009.

While a detailed breakdown of the performance of each division has not been publicly disclosed, analysts speculate that the company’s device solution (DS) division, responsible for the semiconductor business, may have incurred losses in the range of 3 to 4 trillion won.

In contrast, the MX division is anticipated to have achieved a profit level ranging from 2.7 to 2.8 trillion won. This signifies a reduction in the profit margin of about 1 trillion won compared with the first quarter when the MX and network divisions reported a robust operating profit of 3.94 trillion won, largely driven by the successful release of the Galaxy S23 series.

Analysts at eBEST Investment & Securities predicted a 9 percent decline in Samsung Electronics’ smartphone shipments in the second quarter compared with the previous quarter, estimating a volume of 55 million units.

The second quarter figures are preliminary, and Samsung Electronics is scheduled to announce its final second-quarter earnings later this month.