Samsung’s annual profits continued to decline in 2023

Samsung could not get rid of this situation sharp decline in profits He lived in 2022. His final income statement, the Korean company reported annual revenue of KRW 258.94 trillion ($194 billion) and operating profit of KRW 6.57 trillion ($4.9 billion) for fiscal 2023. These are significantly smaller numbers than the previous fiscal year, especially the last fiscal year — Samsung announced an operating profit of KRW 43.38 trillion ($35 billion) for 2022, which was already higher than the previous year due to weak demand for its chips and smartphones. It was $6.9 billion less. according to The Wall Street Journalthese numbers represent Samsung’s weakest returns in a decade.

The company says there are signs of recovery in its memory business, but not enough to prevent it from incurring an operating loss of KRW 2.18 trillion ($1.63 billion) for the fourth quarter of 2023. Its visual display and digital devices division also posted KRW 0.05 trillion ($37.5). million) operating losses despite good TV sales in the fourth quarter due to the holiday season. Samsung’s mobile business also posted a quarter-on-quarter drop in sales and profit due to lower smartphone sales and “reduced new product effects” from previous flagship models.

Samsung’s game plan for the first quarter of 2024 is to improve profits by “increasing sales of high-value-added products,” such as components designed for generative AI products. It expects stronger demand for its chips in the PC and mobile sectors this year, but admits that profits may not recover significantly soon as customers are still destocking. He has high hopes for Samsung Galaxy S24 seriesthough, and believes that the AI ​​capabilities of the devices could help its mobile business achieve double-digit growth in 2024. Galaxy S24 phones have already started shipping with prices starting at $800 and $1,300 for the most basic version. S24 Ultra.

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