The golden era seems to be over for Samsung DS, the department that oversees chip production. The Galaxy S23 looks set to be a big hit again.

Samsung has announced its financial results for the first quarter of 2023. With sales of 63.75 trillion South Korean won (equivalent to 43.2 billion euros) and an operating profit of 640 billion won (434 million euros), the figures fell short of expectations. The chip department turned out to be a problem child in this quarter. Samsung DS, the division responsible for developers of display and chip technology, closed the quarter with a net loss of three billion euros.

The downward trend has lasted for a long time. By the end of 2022, the chip department was only good for black numbers. Earlier this month, we wrote that Samsung severely curtailed chip production this quarter. The situation was very different exactly a year ago. Then the chip business almost single-handedly ensured that Samsung experienced one of its best winter quarters.

Samsung is now in danger of being drawn into the chip war between the USA and China. South Korean President Yoon Suk Yeol is visiting Washington this week, which has urged Samsung and SK Hynix not to increase sales in China if Beijing introduces a van against Micron. Still, the company remains optimistic and expects profits from chip technology sales to recover, a spokesman told Reuters.

S23 runs smoothly over the counters

It’s far from gloomy as Samsung’s mobile division has presented strong results. Although the demand for smartphones has not yet reached the level of the big days, the market for flagship devices continues to grow. The Galaxy S23 series announced in February is therefore selling well, with the most expensive Galaxy S23 Ultra at the top.

Rightly so, we concluded in our extensive test. In the summer, Samsung will be launching the latest generation of foldable smartphones, which it is naturally hoped will sell just as quickly.