Samsung has recently disclosed its financial performance for both the fourth quarter and the entire calendar year of 2023, and the outcome is nothing short of alarming. To put it in perspective, total sales have sustained a consecutive yearly decline for the second year running, this time plummeting by a significant 14%.
The operating profit for 2023 tells a similarly sobering tale, amounting to merely $5 billion. This figure stands in stark contrast to the $32.58 billion recorded in the preceding year, underscoring a nearly sevenfold decrease in profitability.
The company has reported an upturn in Q4 revenue and profit when compared to the preceding three-month period. This improvement can be attributed primarily to enhanced performance elevated memory prices, and sustained robustness in the sales of premium display products.
Samsung has outlined its plan to enhance profitability by placing more emphasis on the promotion of high-value-added products. This entails a strong focus on devices incorporating generative AI, exemplified by the Galaxy S24 series. Additionally, existing foldable devices are expected to receive the new Galaxy AI features through forthcoming software updates.
While there was a slight uptick in market demand for smartphones on a quarter-over-quarter basis, the overall results for the full year still showed a concerning 7% decline, accompanied by a substantial 20% reduction in profit.
Historically, the first quarter of the year has proven to be a robust period for Samsung’s MX (Mobile eXperience) division, primarily due to the introduction of the Galaxy S series. Despite the company’s anticipation of a general dip in market demand, it is expected that the premium segment will exhibit a year-on-year increase.
Looking ahead to 2024, there are optimistic expectations for a rebound in demand, driven by the broader context of global economic recovery. This anticipated resurgence is anticipated to extend across various product categories, including smartphones, tablets, and TWS (True Wireless Stereo) devices.