Reserve the Next Galaxy for free, and get $50 Samsung Credit. 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

Google Assistant on Galaxy Watches to be replaced by Gemini

Google Assistant on Galaxy Watches to be replaced by Gemini

As smartwatches have small screens and limited number of buttons, interacting with them is not very easy. That’s where voice assistants come into play. On your Samsung Galaxy Watch, that would be Google Assistant. It will do all the heavy lifting for you. You can ask it to set an alarm, send a message, or […]

  • By Abid Iqbal Shaik
  • 17 hours ago
Samsung had the highest Q3 phone shipments in three regions

Samsung had the highest Q3 phone shipments in three regions

New market share reports for the third quarter of 2024 are coming in, revealing a year-on-year increase in shipments and the average selling price of smartphones. Shipment-wise, Samsung led three out of five regions and the global market on average. The recent Q3 2024 smartphone shipment report from Counterpoint Research suggests that Samsung had the […]

  • By Mihai Matei
  • 18 hours ago
Samsung’s ‘AI Subscription’ plan for phones, tablets is coming next month

Samsung’s ‘AI Subscription’ plan for phones, tablets is coming next month

Samsung has announced that it will start offering its AI subscription plan starting next month. However, it isn't the AI subscription that you think it is. After the company brought AI features to its phones and tablets, it was revealed that it could start charging for those features. And you might think this AI subscription […]

  • By Asif Iqbal Shaik
  • 19 hours ago
Samsung’s profit doubles but still misses expectations due to AI chip issues

Samsung’s profit doubles but still misses expectations due to AI chip issues

Samsung Electronics announced its earnings estimates for the fourth quarter of 2024. The company's profit more than doubled compared to Q4 2023, but its earnings still missed market expectations due to lingering issues in its AI memory chips and foundry. Samsung's Q4 2024 operating profit was $4.46 billion According to Samsung's earnings estimates, its revenue […]

  • By Asif Iqbal Shaik
  • 24 hours ago
SmartThings for Ships: The tech we didn’t expect from Samsung at CES

SmartThings for Ships: The tech we didn’t expect from Samsung at CES

The Samsung group has numerous subsidiaries, many of which make it into our news section for varying reasons. We don't usually report on Samsung Heavy Industries (SHI) – the arm that manufactures ships and offshore platforms – as naval engineering and shipbuilding are out of our scope. Nevertheless, CES 2025 had a few surprises, and […]

  • By Mihai Matei
  • 2 days ago
Samsung’s dual-folding phone is reportedly launching this year

Samsung’s dual-folding phone is reportedly launching this year

For at least the past 2-3 years, Samsung has been showcasing dual-folding smartphone prototypes. It was expected that the company would launch such a device for consumers. However, that hasn't happened yet. Our dreams could finally come true, as Samsung has reportedly planned to launch its first dual-foldable phone/tablet hybrid device this year. First dual-foldable […]

  • By Asif Iqbal Shaik
  • 2 days ago