Samsung recorded its lowest profit since the 2009 global financial crisis in the first quarter of this year, prompting it to take steps to reduce production of memory chips.
Operating profit plunged more than 95% to 600 billion won ($450 million) for the three months ended March, well short of expectations of 1.4 trillion won. Sales fell to 63 trillion won.
Following that, the South Korean technology giant announced that it will reduce the production of memory chips to a 'meaningful' level.
The move was welcomed by investors, which saw its shares rise as much as 3.9% in Friday morning trading.
Inventories at Samsung had risen to 52.2 trillion won at the end of last year after it maintained production despite declining demand.
In contrast, rivals SK Hynix Inc and Micron Technology Inc have already cut production.
Nevertheless, Samsung signaled that it will not back down from its aggressive strategy by continuing to invest in infrastructure to expand R&D investment to strengthen technology leadership.
