Order the King of Android! Get your 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
Notifications

Samsung’s profit in Q4 2024 was higher but HBM issues persist

Business
By 

Last updated: January 31st, 2025 at 04:52 UTC+01:00

Earlier this month, Samsung published earnings guidance for the fourth quarter of 2024. It estimated its revenue to be 10% higher and operating profit to be more than double the numbers from the previous year. Today, the company has published its final earnings figures for Q4 2024.

The company's revenue and profits rose in Q4 2024 compared to the previous year, but it still missed the market's expectations mainly due to memory chip issues and weak economic conditions.

Samsung Electronics Q4 2024 revenue was nearly 10% higher than Q4 2023

Samsung revealed that its revenue in Q4 2024 was KRW 75.8 trillion ($52.1 billion), which is 11.8% higher than the revenue it generated in Q4 2023. Its operating profit was KRW 6.5 trillion ($4.46 billion), which is 29.9% higher than the same quarter in the previous year.

While these figures may seem positive, things are not looking good for the company. Samsung's operating profit missed market expectations by 15.7%. That is primarily due to weak sales of semiconductor chips for AI servers and personal computing devices.

The company has been having issues with its high-bandwidth memory (HBM) chips. Reports indicate that it could not get its HBM3E chips certified by Nvidia to be used in the latter's flagship AI accelerators (GPUs) used by companies like Amazon, Google, Meta, Microsoft, and OpenAI.

Samsung HBM3E Memory Shinebolt

Samsung's cash cow has always been its memory chip business, but that seems to be struggling. While its HBM chips are said to be facing overheating issues, leading to delays in shipments, its DRAM (RAM) chips and NAND (storage) chips aren't earning much money due to competition and lower prices.

The company's semiconductor chips unit, Samsung Semiconductor, saw sales of KRW 30.1 trillion ($20.68 billion) and an operating profit of KRW 2.9 trillion ($1.99 billion) in the quarter.

Samsung's smartphone business is also facing fierce competition from Chinese brands like OPPO, Vivo, and Xiaomi. So, the operating profit from its mobile business fell during Q4 2024. Its home appliances and TV business, Samsung DX, also saw its profit decline during the quarter due to rising competition and costs.

Overall, the company spent KRW 10.3 trillion ($7.08 billion) on research and development in Q4 2024 and a record KRW 35 trillion ($24.06 billion) throughout last year (2024).

If you look at the company's annual earnings for the entire year of 2024, its revenue was 300.87 trillion ($206 billion), while the operating profit reached KRW 32.7 trillion ($22.47 billion).

Compared to the previous year, its revenue rose 16.2%, marking it the second-highest revenue in the company's history. Its profit jumped 498% (nearly 5x) compared to the previous year.

What is Samsung's business outlook for the year 2025?

Samsung said its business is expected to remain weak due to multiple reasons, including US sanctions on sales of advanced chips to China, rising competition from Chinese firms, and weak Korean currency.

The South Korean firm said it plans to improve profits through higher sales of high-end and foldable phones equipped with “differentiated AI” features. It also plans to increase the sales of ultra-large and high-end TVs.

The Frame Pro TV CES 2025 Booth

In the semiconductor segment, the company plans to develop key technologies to remain competitive. Samsung Display Corporation, its display manufacturing division, intends to strengthen its leading position in the high-end display panel segment.

Image Credits: Samsung

Business 2nmEarningsHBMHBM3EHBM4Samsung Device SolutionsSamsung DisplaySamsung DXSamsung ElectronicsSamsung FoundrySamsung MXSamsung NetworksSamsung SemiconductorSystem LSI Pre-Order Galaxy S25
Scroll for more related content
News For You

You might also like

Samsung won’t have to deal with OnePlus foldable phone this year

Samsung won’t have to deal with OnePlus foldable phone this year

Despite having a multi-year lead in the foldable smartphone segment, Samsung lost it due to its slow pace of innovation over the past couple of years. Chinese foldable phones are offering better specifications in thinner packages. However, Samsung won't have to worry about OnePlus' foldable phone this year. New OnePlus Open won't be launched this […]

  • By Daniel van Dorp
  • 8 hours ago
Did Samsung just reveal why One UI 7 is delayed?

Did Samsung just reveal why One UI 7 is delayed?

Samsung has been inexcusably late with the release of the One UI 7.0 update. Usually, the company releases a major new One UI (and Android) update to its high-end devices before the end of the year. But that didn't happen with One UI 7.0, and Samsung has finally explained the reason for the delay. Samsung […]

  • By Asif Iqbal Shaik
  • 1 day ago
Important display info about Samsung’s tri-fold smartphone just leaked

Important display info about Samsung’s tri-fold smartphone just leaked

The size of the cover screen of Samsung's tri-folding smartphone has been leaked. At the Galaxy S25 launch event, Samsung teased several new phones that it is working on, confirming that it has a “multi-fold” smartphone in development. This multi-fold smartphone is one we have been hearing about in rumors for some time, and while […]

  • By Abhijeet Mishra
  • 2 days ago
Apple may have caused delays in Samsung Display’s Gen 8 OLED plans

Apple may have caused delays in Samsung Display’s Gen 8 OLED plans

Samsung Display's plans to install a second Gen 8 OLED deposition unit at its A6 manufacturing line have reportedly been delayed. The reason might be Apple. Nevertheless, the Korean tech giant will soon expand its Gen 8 OLED manufacturing capabilities. Reports say that Samsung Display has extended its contract with Gen 8 OLED manufacturing equipment […]

  • By Daniel van Dorp
  • 2 days ago
OpenAI reportedly chooses TSMC, not Samsung, to make its AI chips

OpenAI reportedly chooses TSMC, not Samsung, to make its AI chips

Last week, Samsung Electronics chairman Jay Y. Lee met OpenAI CEO Sam Altman in South Korea in a bid to create an open partnership in which the two companies help out each other. However, OpenAI appears to be planning to let TSMC, Samsung's primary rival, make its in-house AI chips. OpenAI's in-house 3nm AI chips […]

  • By Asif Iqbal Shaik
  • 2 days ago
Samsung launches S85F OLED TV in South Korea

Samsung launches S85F OLED TV in South Korea

At CES 2025, Samsung launched its lineup of OLED TVs for 2025. It has three models, the S85F, S90F, and the S95F. Well, the company has now launched the base model in the series, the S85F, in its home country, South Korea, making it the first region where the TV is going on sale. While […]

  • By Abid Iqbal Shaik
  • 2 days ago