Be the first - Pre-order the Galaxy S25 Ultra today! Follow us on Google news!

SamMobile has affiliate and sponsored partnerships. If you buy something through one of these links, we may earn a commission.

News For You
News For You
Notifications

Samsung’s profit drops 34.4% in Q4 2023 due to slow semiconductor chip sales

Business
By 

Last updated: January 31st, 2024 at 05:49 UTC+01:00

After posting its earnings estimates for Q4 2023 a few weeks ago, Samsung has now published its final earnings for the fourth quarter of last year. While the company's condition has improved slightly compared to the earlier quarters, it is far from the glory days that it saw after the COVID-19 pandemic.

Samsung's revenue and profit improved slightly in Q4 2023, but it was still lower than last year

Samsung Electronics has announced that its revenue for Q4 2023 was KRW 67.78 trillion ($50.78 billion), and its operating profit for the quarter was KRW 2.82 trillion ($2.11 billion). The company's annual revenue last year turned out to be KRW 258.94 trillion ($194.01 billion), while its operating profit was just KRW 6.57 trillion ($4.92 billion). The company said that its revenue and profit increased in the fourth quarter compared to the third quarter. However, when you look at the year earlier, its profit declined 34.4% from KRW 4.3 trillion ($3.22 billion).

Samsung 8th Gen V-NAND Storage Chip

Most of the improvement in revenue and profit is owed to increased semiconductor memory chip prices and sales of premium display panels. The company expects things to improve further in Q1 2024, as it is planning to improve the sales of higher-end products, including the recently launched Galaxy S24 series. The company is banking on the booming AI and Generative AI market, and it plans to sell more semiconductor chips that are used for AI processing in the cloud and on-device and by integrating AI-powered features in its smartphones, TVs, and appliances.

Samsung expects things to improve significantly in the second half of 2024

Samsung said that economic uncertainties will remain in 2024. If you don't know already, the global economic condition still hasn't improved, and several companies are laying off their employees in large numbers. So, people might not spend money on products like expensive home appliances, smartphones, and TVs. However, the South Korean firm said that its financial performance will improve slightly in the first half of 2024, and a more significant improvement will be seen in the second half of this year.

The company spent billions of dollars last year in building its memory chip manufacturing infrastructure at its facility in Pyeongtaek, South Korea. It also invested capital to improve the production capacity of HBM, DDR5, and other advanced semiconductor chips. It also made significant investments in improving its 5nm or better semiconductor chip fabrication processes and production capacity. In the display panel segment, its investments were mainly related to OLED panel production for laptops and monitors and flexible displays for mobile products.

BusinessGeneralLaptopPhoneTabletTVWatch AIGenerative AISamsung DXSamsung ElectronicsSamsung FoundrySamsung MXSamsung NetworksSamsung SemiconductorSystem LSI Buy Galaxy S24
Scroll for more related content
News For You

You might also like

What’s new on Galaxy S25 compared to One UI 7.0 on Galaxy S24?

What’s new on Galaxy S25 compared to One UI 7.0 on Galaxy S24?

The Galaxy S25, Galaxy S25+, and Galaxy S25 Ultra, which were announced today, are the first to run the stable version of One UI 7.0. While we've already seen it running on the Galaxy S24, some One UI 7.0  features are currently available only on the Galaxy S25 series. Let us have a look at […]

  • By Asif Iqbal Shaik
  • 2 days ago
Samsung brings Android 15 and AI to its classroom displays

Samsung brings Android 15 and AI to its classroom displays

Since 2024, Samsung has been introducing AI-powered features to its devices. It started with smartphones and tablets and expanded to TVs, PCs, and home appliances. This year, it brought AI to its high-end monitors. Now, the company has introduced its newest Interactive Displays with AI features. These displays are meant for classrooms and educational institutions. […]

  • By Asif Iqbal Shaik
  • 3 days ago
Unpacked shows why Samsung Galaxy and Android are as thick as thieves

Unpacked shows why Samsung Galaxy and Android are as thick as thieves

Many people love it, some not so much, but the truth is that Samsung Galaxy is the face of Android today more than ever. “Galaxy” and “Android” have become synonymous, and Samsung will strengthen that perception even further at Unpacked this week. One big reason things turned out the way they did is the bond […]

  • By Mihai Matei
  • 4 days ago
Google’s and Samsung’s Eclipsa Audio is coming to Galaxy phones, tablets

Google’s and Samsung’s Eclipsa Audio is coming to Galaxy phones, tablets

Earlier this month, Google and Samsung revealed a new spatial audio format called Eclipsa Audio. It is a royalty-free alternative to the popular format Dolby Atmos. Now, Google has revealed that Eclipsa Audio is coming to Android devices. Eclipsa Audio is coming to Android (including Galaxy) phones and tablets Google revealed last week that IAMF-based […]

  • By Asif Iqbal Shaik
  • 4 days ago
Samsung has a new solution to push employess to work harder

Samsung has a new solution to push employess to work harder

Samsung is going through one of the most challenging times in its history. Due to issues in its memory and semiconductor chip businesses, the company's stock prices have fallen drastically compared to six months ago. The South Korean firm is now trying a new solution that could change its fate. Samsung will tie bonuses of […]

  • By Asif Iqbal Shaik
  • 6 days ago
Stock Samsung apps on One UI 7.0 to get Gemini AI integration

Stock Samsung apps on One UI 7.0 to get Gemini AI integration

Samsung has been working more closely with Google over the past 3-4 years. Many new features that Google developed for Android and WearOS came first to Samsung devices. They even co-developed Wear OS 3 to save the Android smartwatch industry. Now, it looks like Samsung will be the first Android brand to get Gemini AI […]

  • By Asif Iqbal Shaik
  • 1 week ago