Samsung’s Profits Decline by 34% to $2.1 Billion in Q4 2023

On Wednesday, the leading electronics company “Samsung” announced a 34% annual decrease in operating profits during the last quarter of the previous year, according to a report by Associated Press.

The gradual recovery of the electronic chip market is being overshadowed by the sluggishness in demand for televisions and other consumer electronic products.

The South Korean giant company said that it expects its performance to improve throughout 2024, and that the demand for semiconductor chips, which are increasingly used to operate artificial intelligence equipment in smartphones, personal computers, and other products, will increase.

However, the uncertainty surrounding the overall economy may continue to influence Samsung’s business in the near term.

Samsung’s operating profits reached 2.8 trillion won ($2.1 billion) in the three months until December, compared to the 4.3 trillion won ($3.2 billion) achieved in the same period last year.

The company’s operating profits for the entire year of 2023 amounted to 6.5 trillion won ($4.8 billion), a decrease of 85% compared to its profits in 2022. This represents the company’s lowest level since 2008 when global markets were experiencing a financial crisis.

While the semiconductor department in the company recorded a loss of 14.9 trillion won ($11 billion) in 2023, the losses decreased during the fourth quarter, as the dynamic random-access memory (DRAM) made a comeback and generated profits.

The company announced last October that it plans to increase its production capacity of high-bandwidth advanced electronic chips by more than double by 2024 to meet the demands of artificial intelligence.

According to Samsung management, in a statement they stated that “In 2024, we expect the market to continue recovering despite potential obstacles, including interest rate policies and geopolitical issues.”

The company also focuses on boosting sales of its latest smartphone “Galaxy S24”, which is designed with a range of new features supported by artificial intelligence, including direct translation during phone calls in 13 languages and 17 local dialects.