Samsung’s fourth quarter profit dips from poor chip and smartphone sales
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Samsung observed its income fall considerably all through the fourth quarter from inadequate gross sales of memory chips and the ongoing slowdown in development in the smartphone industry.
The South Korean tech large claimed on Tuesday that it recorded 4.31 trillion won in working revenue and 70.46 trillion won in earnings in the fourth quarter of 2022. Running profits dipped 69% yr-on-yr and revenue dropped by 8% more than the identical time interval.
Samsung’s chip business, or the Unit Remedies Business enterprise, its standard hard cash cow, contributed a meager 270 billion won in running income __ essentially barely breaking even.
The organization mentioned it saw unit selling prices of memory chips fall considerably from the valuation reduction of its inventory while shoppers also purchased fewer chips to change their possess inventories.
Samsung is not the only memory chipmaker feeling the brunt of this price fall Micron documented a internet loss of $195 million in its latest fiscal quarter and SK Hynix is also envisioned to report an functioning decline.
Meanwhile, Samsung’s purchaser electronics small business, or the Machine Working experience Enterprise, also done badly, recording 1.64 trillion won in working cash flow.
For its cell business enterprise, the business reported it noticed the two revenue and gain drop owing to the all round slowdown in smartphone profits and weak demand for small- and mid-tier smartphones.
But Samsung Display, Samsung’s show panel maker, performed solidly, contributing 1.82 trillion received. The unit targeted on superior-end smartphone products regardless of market place need continuing to agreement, Samsung mentioned.
The South Korean tech big failed to right mention its consumers but the high income possible arrives from reliable revenue of Apple’s Apple iphone 14 sequence, which works by using OLED display panels made by Samsung Display.
For the full yr of 2022, even with its weak fourth-quarter earnings, Samsung recorded 302.23 trillion won in revenue, an raise of 8% from a yr back. Running cash flow was 43.38 trillion gained, a drop of 8% yr-on-year, irrespective of the world financial downturn and the Russia-Ukraine war.
For 2023, Samsung stated that whilst macroeconomic uncertainties will persist, customer demand is anticipated to start recovering in the course of the second fifty percent of the 12 months.
For chips, it will focus on innovative nodes and goods, whilst in smartphones it predicted demand from customers to keep on to polarize between top quality and reduced-tier smartphones, this means demand for large-priced phones will keep on.
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Source backlink Samsung Electronics Co Ltd posted a weakened Q4 profit on Tuesday as demand for semiconductors and smartphones fell due to the COVID-19 pandemic. The South Korean tech giant reported an operating profit of 6.6 trillion won ($5.83 billion) for October-December. This is a decrease of 8.8% from a year ago, while net profit fell 14.6% to 5.29 trillion won.
Revenues dropped to 66.96 trillion won in the fourth quarter, a decrease of 8.9% compared with the previous year.
The pandemic continued to affect Samsung in the fourth quarter, with weaker demand for smartphones and the company shutting down some operations due to a rise in infection rates. This was offset by the strong performance of its semiconductor business, as demand for smartphones and laptop components held up despite the pandemic.
However, the company’s semiconductor income decreased from the previous quarter due to weak demand for memory chips and seasonal factors.
Samsung’s mobile business saw a 6.1% decrease in quarterly sales to 29.41 trillion won led by strong sales of its flagship Galaxy Note20 5G Series and A Series smartphones.
Overall, 2020 was a difficult year for Samsung. Revenues fell 5.6% to 212.9 trillion won, while operating profit declined 18.2% to 25.6 trillion won.
With the global economy undergoing a slowdown due to the pandemic, Samsung expects a difficult road ahead. The company is banking on a rebound in the second half of 2021 if vaccinations prove effective. It also plans to release a new flagship device in the first half of the year, which could help revive its mobile business.
