Samsung has released its financial results for the fourth quarter and calendar 2023, and the results are disappointing, to say the least. Total sales decreased year over year for the second consecutive year and this time the decline was 14%.
Operating profit for the full year of 2023 was just KRW 6.57 trillion ($5 billion), nearly seven times lower than the KRW 43.38 trillion ($32.58 billion) recorded in 2022.
The company said fourth-quarter revenue and profits increased, compared to the previous quarter, primarily due to improved performance and higher memory prices, as well as continued strength in sales of premium display products.
Samsung said it will focus on improving profitability by increasing sales of high value-added products. This includes devices with generative AI – the Galaxy S24 series, as well as current foldable devices which are expected to get the new Galaxy AI features with a software update.
Market demand for smartphones increased slightly on a quarterly basis, but full-year results remained down 7%, while profits shrank 20%.
The first quarter of the year is generally positive for Samsung’s MX (Mobile eXperience) division thanks to the Galaxy S series. The company expects a general decline in market demand, but the premium segment is expected to increase year on year.
Expectations for 2024 are for demand to pick up following a global economic recovery, and this includes smartphones, tablets and TWS devices.
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