Samsung reported a decline in profits for the fourth consecutive quarter, concluding a challenging year marked by its loss of the title as the world’s leading smartphone manufacturer.
The South Korean tech giant recorded a 35% decrease in profit, reflecting sluggish demand for consumer devices and semiconductor chips.
Operating profits for the December quarter fell to 2.8 trillion won, down from 4.3 trillion won a year earlier, aligning with the company’s earlier earnings projection.
Despite this, Samsung remains hopeful for a revival in mobile device demand in the upcoming year.
The company expressed optimism regarding a potential resurgence in the smartphone market in 2024, particularly with the introduction of new AI-powered smartphones expected to stimulate demand.
However, Samsung faced a setback in the fourth quarter as it was surpassed by Apple in smartphone sales, with the latter holding a slightly higher global market share.
Acknowledging reduced smartphone sales during the fourth quarter, Samsung observed a rise in demand for high-end smartphones and an increase in tablet sales due to new product launches.
However, challenges persist for Samsung, including weakened demand for semiconductors and ongoing macroeconomic uncertainties.
The company reported significant losses in its device solutions unit for 2023, primarily driven by the decline in memory chip demand.
While Samsung expects a gradual market recovery this year, it anticipates continued challenges, including geopolitical issues and interest rate policies.
Although the company noted a slight improvement in memory chip prices in the fourth quarter, it cautioned that near-term earnings might be impacted by macroeconomic uncertainties.
Samsung foresees a moderate improvement in earnings in the first half of 2024, with a more significant upturn anticipated in the latter half of the year.
Following the announcement, Samsung shares experienced a slight decline of 1.6% in Seoul.
Source-CNN
