Samsung’s quarterly profits have fallen to an eight-year low, due to weakened demand for smartphones and PCs.

The Korean giant reported operating profits of A$4.96 billion for the December quarter, down 69 per cent from a year ago.

Revenue fell 8 per cent to A$81.21 billion for the quarter.

Despite the slowdown in smartphone demand, Samsung announced “plans to expand its leadership in the premium smartphone segment with the launch of Galaxy S23” in its result statement, lifting the lid on the worst-kept secret in tech.

“The business environment deteriorated significantly in the fourth quarter due to weak demand amid a global economic slowdown,” Samsung noted in its statement.

The company saw earnings decrease in its Memory Business, and its System LSI Business.

Its Digital Appliances Business suffered cost increases due to deteriorated market conditions and increased competition in the market.

Smartphone profits plunged, due to “weak demand in the mid- to low-end segments”, which also saw Samsung Display lose business in mobile panels.

Despite this, the company declared it will not cut back on 2023 spending, saying its capital expenditures will be similar to that of last year.

“The deteriorated business environment is not so favorable for our performance for now, but we believe it is also an opportunity where we can thoroughly prepare for the future,” the company said in its earnings call.

Samsung flagged its lacklustre quarter in guidance earlier in this month.

The company’s earnings missed Wall Street estimates of A$7.8 billion — falling short by more than A$3.8 billion — and fell far from the A$16.1 billion the company brought in during the same three month period in 2021.

In its earnings call, Samsung admitted “mobile and PC demand was weak,” and its memory chip business suffered “as customers continued to adjust their inventories amid deepening uncertainties.”

Samsung admits “macroeconomic uncertainties are expected to persist” but it anticipates demand to begin recovering in the second half of 2023.

The company will no doubt be focusing on its full-year results, which saw revenue hit A$348.41 billion, up from A$322.46 in 2021, and a record high. Of course, inflation played a large part in this, as did the strength in the US dollar against the Korean won.

Shares dropped 3 per cent in Seoul after the results were released.