People reduce buying phones, businesses 'lose' thousands of billions in profits

For example, Mobile World Investment Corporation (stock code MWG) recorded revenue of VND30,287.7 billion, down 5.4% year-on-year and profit after tax of VND38.82 billion, down 95.7% compared to the third quarter of 2023. Explaining the decline in profits, Mobile World said that the purchasing power of mobile phones and electronics in general is still weak and has not shown any significant signs of recovery (except for some products due to seasonal factors). The company informed that customers still have the need to buy and replace damaged products but are more cautious and careful in making detailed decisions when the economic situation is still volatile.

Accumulated in 9 months, Mobile World achieved revenue of more than 86,858 billion VND, down 15.5% compared to the same period, but profit after tax only reached 77.5 billion VND, down 97.8% compared to the same period last year.

Profits of mobile phone and computer retailers plummet

Another technology equipment retail giant, FPT Retail, still recorded a loss. Specifically, in the third quarter of 2023, the revenue of FPT Shop chain of FPT Retail Joint Stock Company (stock code FRT) decreased by nearly 21% compared to the same period last year to about 4,100 billion VND. However, thanks to the FPT Long Chau pharmacy chain, FPT Retail still recorded positive revenue growth compared to the same period with nearly 8,236 billion VND. However, in the third quarter of 2023, the company still recorded a loss after tax of more than 13 billion VND while in the same period last year it had a profit of more than 84.5 billion VND. In the whole 9 months, FPT Retail had a loss after tax of more than 225.7 billion VND while in the first 9 months of 2022 it had a profit of more than 301.4 billion VND.

Also in the technology equipment product business but in the distribution segment, Digital World Joint Stock Company (Digiworld - stock code DGW) achieved revenue in the third quarter of 2023 of VND 5,412 billion, down 10.7% over the same period last year. As a result, Digiworld achieved a profit after tax for parent company shareholders of VND 102.4 billion, down 43% over the third quarter of 2022. Digiworld said that the laptop and tablet segment recorded revenue of VND 2,398 billion, down 2% over the same period last year but up 79% over the second quarter of 2023. The reason is that the third quarter of 2023 is the peak season for laptops when students prepare for the new school year.

In contrast, the third quarter was a low point for the mobile phone segment as consumers reduced spending to prepare for the launch of the iPhone. Revenue in the third quarter of 2023 of the mobile phone segment reached VND 1,774 billion, down 26% year-on-year and down 19% compared to the second quarter of 2023... Accumulated for 9 months, the company achieved net revenue of VND 13,968 billion and net profit of VND 265 billion, down 22% and 50% respectively compared to the same period last year...

According to statistics from Wichart , as of November 1, the market had over 1,000 businesses reporting business results for the third quarter of 2023. Of these, 196 units reported losses with a total loss of over VND 6,900 billion. The largest losses came from 35 businesses listed on HOSE with a total loss of over VND 4,400 billion.

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