2024-01-31
176
1 minutes.


Samsung Electronics: record losses and reduction in overall operating profit by 35%

Samsung Electronics faced setbacks in the last quarter of 2023. The company's total revenue was 67.78 trillion Korean won (approximately $51 billion), while analysts had expected revenue of 69.27 trillion Korean won. Revenue decreased 3.8% compared to the fourth quarter of 2022.

Bad quarter for Samsung Electronics

Declining operating profit

The company generated 2.82 trillion KRW in operating profit in the last quarter, down 34.57% from a year earlier in the same period. Operating profit was expected to reach 3.43 trillion Korean won.

Samsung Electronics record losses and reduction in overall operating profit by 35

Significant losses in the semiconductor business

For 2023, the semiconductor business of Samsung Electronics, which has long time was the financial engine of the company, suffered losses of 14.88 trillion Korean won. Compared to the previous year, this business generated a profit of KRW 23.82 trillion. Weak global demand for memory and other chips was the reason for these results.

Samsung Electronics record losses and reduction in overall operating profit by 35

Improved revenue and operating profit

However, Samsung says its revenue and operating profit in the fourth quarter improved from the third quarter due to recovery in memory chip prices and sales of premium displays. Due to the "fading effect" of demand for new models launched in the third quarter, the smartphone business' revenues and profits declined in the fourth quarter compared to the previous quarter.

Samsung Electronics record losses and reduction in overall operating profit by 35

The smartphone market is shifting towards premium

There is a shift in the smartphone market towards premium -class where companies like Apple do better.

"We will focus on increasing sales of high-value-added products to improve profitability," Samsung said.

The average selling price of Samsung smartphones increased by approximately $100 from 2020 to 2023.

In the first quarter, the company expects a decline in demand for smartphones due to seasonality, but predicts growth in the premium segment compared to the same period last year. Samsung expects a "moderate improvement" in its profits in the first half of 2024, while a "more significant improvement" can only be expected in the second half of the year.

Source: cnbc

Answers to questions

How much revenue did Samsung Electronics generate in the last quarter of 2023?

Samsung Electronics generated revenue of 67.78 trillion Korean won (about $51 billion) in the last quarter of 2023.

How did Samsung Electronics' operating profit change in the last quarter of 2023 compared to the previous year?

Samsung Electronics' operating profit in the last quarter of 2023 was KRW 2.82 trillion, down 34.57% year-on-year.

Why did Samsung Electronics' semiconductor business suffer losses in 2023?

Samsung Electronics' semiconductor business suffered a record loss of 14.88 trillion Korean won in 2023 due to weak global demand for memory and other chips.

Additional information

  • Samsung Electronics is a company specializing in the production of electronics and technology solutions.

Links


Copywriter Elbuz
Brief description
In the last quarter of 2023, Samsung Electronics faced financial difficulties. The company reported below-expected revenue and a decline in operating profit. Find out more in this article.
Article Target
Inform and analyze the financial results of Samsung Electronics
Style
Informative
Target audience
Investors, economists, industry observers


Contents:



Save a link to this article

Discussion of the topic – Samsung Electronics: record losses and reduction in overall operating profit by 35%


In the last quarter of 2023, Samsung Electronics faced financial difficulties. The company reported below-expected revenue and a decline in operating profit. Find out more in this article.


There are no reviews for this product.


Captcha


Next