Samsung has failed to recover from sharp drop in profits that he experienced in 2022. In his latest earnings report, the Korean company reported annual revenue of 258.94 trillion KRW ($194 billion) and operating profit of 6.57 trillion KRW ($4.9 billion) for the 2023 fiscal year. These are significantly lower figures than the previous financial year, especially this last one – Samsung posted an operating profit of 43.38 trillion KRW ($35 billion) for 2022, which is already 6.9 billion dollars less than the previous year due to weak demand for its chips and smartphones. According to The Wall Street JournalThese figures represent Samsung's lowest profits in more than a decade.
The company says its memory business has shown signs of recovery, but not enough to prevent it from suffering 2.18 trillion KRW ($1.63 billion) in operating losses for the fourth quarter of 2023. Its visual display and digital devices division also recorded KRW 0.05 trillion ($37.5 billion). million) operating losses despite good television sales in the fourth quarter due to the end-of-year holidays. Samsung's mobile business also reported a quarter-over-quarter decline in sales and profits, driven by lower smartphone sales and “fading new product effects” compared to the previous quarter. to previous flagship models.
For the first quarter of 2024, Samsung's game plan is to improve its profits “by increasing sales of high value-added products”, such as components for generative AI products. It expects stronger demand for its chips in the PC and mobile sectors this year, but it admits its profits may not recover significantly in the near future as its customers continue to reduce inventories. Samsung has high hopes for the Galaxy S24 seriesHowever, and believes the devices' AI capabilities can help its mobile business achieve double-digit growth in 2024. Galaxy S24 phones have already started shipping with prices starting at $800 for the most basic version and $1,300 for the most basic version. S24 Ultra.
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