Samsung’s financial results for the fourth quarter and the full calendar year of 2023 have been released, and unfortunately, the numbers are not looking positive. Sales have declined for the second consecutive year, with a 14% decrease this time.
Operating profit for the entire year of 2023 was reported at just KRW 6.57 trillion ($5 billion) – a significant drop from the KRW 43.38 trillion ($32.58 billion) reported in 2022.
The company mentioned that K4’s revenue and profit increased compared to the previous three-month period, largely due to better performance and higher prices of memory, as well as strong sales of premium display products.
Samsung also stated its plans to focus on improving profitability by increasing sales of high-value products, such as devices with generative AI – like the Galaxy S24 series, as well as current foldable devices that will receive the new Galaxy AI features through a software update.
While there was a slight increase in market demand for smartphones on a quarterly basis, the full-year results still showed a 7% decrease, and profits shrank by 20%.
The first quarter of the year typically brings strength for Samsung’s MX division (Mobile eXperience) with the release of the Galaxy S series. The company anticipates a general decline in market demand, but a growth in the premium segment compared to the previous year.
It is expected that demand will recover in 2024 due to the global economic recovery, including a recovery in demand for smartphones, tablets, and TWS devices.