Samsung Q1 2023 earnings highlight 'successful' Galaxy S23 sales amid massive drop in profit

Samsung logo
(Image credit: Android Central)

What you need to know

  • Samsung has reported its Q1 2023 earnings in full.
  • The company earned 63.75 trillion KRW in consolidated revenue but only 640 billion Korean won in operating profit.
  • The Galaxy S23 series, specifically the Galaxy S23 Ultra, performed quite well in the introductory quarter.
  • While Q2 2023 may continue to be slow for the Korean OEM, it's hopeful the second half of the year will be better overall.

As we close out the stormy month of April, Samsung is revealing how it faired at the top of the year. Earlier this month, Samsung posted its earnings guidance for the previous quarter. The Korean OEM has now published its full Q1 2023 earnings report, which mirrors much of what its guidance alluded to. Samsung states the company posted 63.75 trillion KRW ($45.57 million USD) in consolidated revenue, a 10% decline from Q4 2022 but a nearly 20% drop from the same time last year.

The company's operating profit was cause for concern in its guidance report and continues to be so in its earnings report. Samsung reports an operating profit of only 640 billion Korean won ($477 million USD), a near 95% freefall from Q1 2022, citing a decrease in demand for its DS (Device Solutions) Division. 

The Korean OEM has grappled with a lowered demand for semiconductors — much like Qualcomm. Samsung's business in producing high-quality memory for PCs has dropped "significantly compared to the previous quarter" due to inventory adjustments by the company and the economic downturn. Samsung remains hopeful that its memory business will pick up in the second half of the year as new CPUs and increased demand for AI generate momentum.

Outside of hope and downturns, the MX and Network businesses generated 31.82 trillion KRW in consolidated revenue and 3.94 trillion KRW in operating profit for Q1 2023. Samsung reported its positive Q1 performance, which could be attributed to the launch of the Galaxy S23 series — specifically, the Galaxy S23 Ultra. Furthermore, a preliminary report from Canalys also showed that Samsung took the top spot in Q1 for smartphone shipments, just outperforming Apple.

The MX business is prepping to unveil its next wave of foldable phones (the Galaxy Z Flip 5 and Z Fold 5) as the Korean OEM looks to drive home its "leadership in the category." Samsung's budget phones, the Galaxy A54 and Galaxy A34 series, will be in the spotlight as the company looks to recover some market demand as those products have gained some new improvements.

Samsung says it will "strengthen the competitiveness of its tablets and wearables" and play up the experience consumers can garner from those devices. We can likely expect to see what the company has in store later this year when it's expected to launch the Galaxy Watch 6 and Galaxy Tab S9. Samsung's Network business hopes to gain an increase in revenue by expanding its overseas markets and improving its position with 5G core chips.

Nickolas Diaz
News Writer

Nickolas is always excited about tech and getting his hands on it. Writing for him can vary from delivering the latest tech story to scribbling in his journal. When Nickolas isn't hitting a story, he's often grinding away at a game or chilling with a book in his hand.

Read more
Samsung logo at CES 2019
Samsung has a sluggish Q4 2024 but sees its next foldables as a key game-changer
Silver Galaxy S25 Ultra on stand
The Galaxy S25 didn't go up in price, which was a very smart move by Samsung
Next to the Galaxy S22, looking at the Galaxy S23
Samsung Galaxy S23 vs. S22: Should you upgrade?
The Galaxy S24 family including the smaller Galaxy S24, larger Galaxy S24 Plus, and premium Galaxy S24 Ultra
Samsung Galaxy S24: Everything you need to know
A Samsung Galaxy S24 Ultra with an AI generated tropical wallpaper on top of a 2025 calendar
Samsung Galaxy S24 Ultra one year later: We want the Galaxy S25 Ultra more than ever
Comparing the sizes and shapes of the Samsung Galaxy S25 Ultra, Samsung Galaxy S25 Plus, and Samsung Galaxy S25
Samsung Galaxy S25: Price, specs, and everything you need to know
Latest in Phones
POCO F7 Ultra back view on blue background with yellow colors next to it
POCO F7 Ultra review: The best bargain of 2025
The Samsung Galaxy S25 Edge on display
New leak shows off Samsung Galaxy S25 Edge in 'Titanium' variants
The back of the Obsidian Google Pixel 9 Pro
Some Pixel owners had a delayed start, thanks to alarm clock failures
Holding an Obsidian Google Pixel 9 Pro
That's not a typo — this Google Pixel 9 Pro deal from Amazon makes Black Friday look like a joke
Leaked image of a blue Galaxy Z Flip 7
New Galaxy Z Flip 7 case leak backs rumors of a larger cover display
Android Central's Lloyd sitting at a computer desk
Editor's Desk
Latest in News
The promotional image for Google Workspace feature drops.
The March Workspace feature drop upgrades Gemini's note-taking and translation tools
The Samsung Galaxy S25 Edge on display
New leak shows off Samsung Galaxy S25 Edge in 'Titanium' variants
Google discusses trends and AI updates to help people travel this summer.
Google prepares you for a hot summer with new AI updates for traveling
YouTube Music home screen
YouTube Music's personalized radio stations are getting even smarter
The back of the Obsidian Google Pixel 9 Pro
Some Pixel owners had a delayed start, thanks to alarm clock failures
Samsung Galaxy S25 Ultra Home Screen - 16x9
Heads up — Samsung's detailed One UI 7 rollout schedule for Galaxy appears