Samsung has released its financial figures for the fourth quarter and calendar year 2023, and they are rather disappointing. Yearly sales have fallen for the second consecutive year, with a 14% decline this time around.
The company’s operating profit for 2023 was a mere KRW 6.57 trillion ($5 billion), which is nearly seven times less than the KRW 43.38 trillion ($32.58 billion) recorded in 2022.
While Q4 revenue and profit saw an increase compared to the previous three-month period, this was mainly due to improved performance and higher memory prices, as well as strong sales of premium display products.
In an effort to boost profitability, Samsung has announced plans to focus on increasing sales of high-value-added products, such as devices with generative AI like the Galaxy S24 series and upcoming AI features for current and future foldable devices.
While smartphone demand experienced a slight quarterly increase, the overall yearly results still showed a 7% decline, with a 20% drop in profit.
Samsung typically sees a strong first quarter for its MX (Mobile eXperience) division, driven by demand for the Galaxy S series. Looking ahead, the company expects an overall decline in market demand, but anticipates growth in the premium segment compared to the previous year.
Projections for 2024 indicate a rebound in demand due to the global economic recovery, which is expected to have a positive impact on smartphone, tablet, and TWS device sales.
