Amid continued external uncertainties, including a potential global economic downturn, overall earnings decreased sharply Q-Q as we saw a significant drop in the memory business results due to lackluster demand and also weaker sales of smartphones.
– For the memory business, the decline in 4Q demand was greater than expected as customers adjusted inventories in their effort to further tighten finances, spurred by concerns over deteriorating consumer sentiment caused continued high global interest rates and weak economic outlooks.
Moreover, increased inventory at memory suppliers added pressure to reduce inventory levels, which led to continued price declines throughout the quarter, and a greater-than-expected drop in ASP.
– Profits from the MX Business declined as smartphone sales and revenue decreased due to weak demand resulting from prolonged macro issues.
– Profitability in the Digital Appliance Business deteriorated due to continuation of sluggish market demand and cost burdens.
: