- Wednesday, October 16, 2024
SEOUL, South Korea — Samsung Electronics (005930, -1.08%) announced a significant decline of 34% in its operating profit for the last quarter. The sluggish demands for its TVs and other consumer electronics products offset the gains made in the slowly recovering computer chip market.
A Bright Outlook for 2024
Despite the challenges in the previous year, Samsung remains optimistic about the future. The technology giant expects larger demands for semiconductors in 2024. These semiconductors power artificial intelligence features that are increasingly used in smartphones, personal computers, and other products. However, Samsung acknowledges that macroeconomic uncertainties may continue to impact its business in the near-term.
In the three months ending in December, Samsung's operating profit measured 2.8 trillion won ($2.1 billion), compared to 4.3 trillion won ($3.2 billion) from the same period last year. Its full-year operating profit for 2023 stood at 6.5 trillion won ($4.8 billion), marking an 85% decline from the previous year and representing the company's lowest since 2008, during the global financial crisis.
Positive Developments in the Semiconductor Division
Although Samsung's semiconductor division suffered a loss of 14.9 trillion won ($11 billion) in 2023, the losses narrowed in the fourth quarter, with the DRAM business returning to profit. Anticipating a continued recovery in the memory business, Samsung plans to more than double its production capacity of advanced high-bandwidth memory chips in 2024 to meet growing demands fueled by AI.
"In 2024, the memory business expects the market to continue to recover despite various potential obstacles, including interest rate policies and geopolitical issues," stated Samsung in a recent release.
The Focus on Galaxy S24 and AI-enabled Features
In addition to the semiconductor division, Samsung aims to boost the sales of their latest smartphone, the Galaxy S24. This cutting-edge device boasts an array of new features enabled by AI, including live translation during phone calls in 13 languages and 17 dialects.
Looking ahead, Samsung remains committed to overcoming current challenges and capitalizing on the potential of emerging technologies to drive growth in the coming years.
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