demand for chips for smartphones and PCs will decline

Samsung believes that consumers will spend less in the near future, reducing the demand for chips. It then refers to chips for smartphones and PCs. This is what the Korean tech giant says when announcing its quarterly figures.

Ask for chips

It is a striking statement from Samsung, especially because it ran a record quarter with a turnover of 58 billion euros. A high point (last year turnover was 12 percent less), but apparently it is already preparing for less fantastic quarters. It already noticed in the past quarter that demand for chips for PCs was weaker and it thinks that will only increase.

The reason that people spend less is mainly due to economic uncertainty. The world has changed enormously due to the coronavirus, but geopolitical tensions also play a role. In terms of smartphones, Samsung already saw a decline in demand in the second quarter of 2022. A pity, because at the same time, the problems on the supplier side of the smartphone branch seem to have been solved.

Samsung

What Samsung can help is that server chips will remain popular. It is therefore those chips that have resulted in record turnover. That market would be less influenced by economic problems. It sounds as if the business market is and will remain considerably more stable than the consumer market from which we mainly know Samsung.

Still, the company behind the Galaxy phones and tablets holds hope. It thinks sales of the flagship aircraft will increase with the new foldable devices that are on the way. Those are expected in early August during a new Samsung Unpacked. We also think we already know a thing or two about those phones, such as what they look like, what chip is likely in them, and what to expect from the storage.

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