Samsung faced a difficult period in 2023, with low sales in its key smartphone and semiconductor chip sectors.
Nonetheless, both the company and market analysts are optimistic about a recovery in sales this year.
Recently, Samsung Electronics announced its preliminary earnings for the fourth quarter of 2023. The company estimates that its revenue for this quarter will be approximately KRW 67 trillion ($51 billion), with an operating profit of about KRW 2.8 trillion ($2.13 billion).
These figures are in line with the third quarter of 2023, where Samsung reported revenue of KRW 67.4 trillion ($51.36 billion) and profit of KRW 2.43 trillion ($1.85 billion).
However, there’s a notable 35% decrease in profit compared to the fourth quarter of 2022, primarily due to sluggish semiconductor chip sales.
For the entire year of 2023, the anticipated revenue for Samsung Electronics is around KRW 258.16 trillion ($196 billion), with a profit estimate of KRW 6.54 trillion ($4.89 billion).
This marks the first time in 15 years that the company’s annual profit has fallen below KRW 10 trillion ($7.6 billion). Notably, this is the first instance of an operating loss in the history of Samsung’s semiconductor division.
Samsung’s mobile division, Samsung MX, has been a significant contributor, showing strong revenue and profits even in a challenging smartphone market. This success is attributed to the high sales of premium models like the Galaxy S23, Galaxy Z Flip 5, and Galaxy Z Fold 5.
Looking ahead, Samsung is gearing up to launch its next flagship smartphone series, the Galaxy S24, on January 17, 2024. The company also plans to release the Galaxy Z Flip 6, Galaxy Z Fold 6, Galaxy Tab S10, and an XR headset later in the year.
These high-end products are expected to bolster the company’s profits. Additionally, Samsung is set to benefit from supplying display panels for the upcoming iPhones, future iPad Pros, and various new laptops and monitors.
