Samsung’s profits decline in Q4 2023, targets double-digit growth for flagship smartphones |

Samsung recently published its earnings report for Q4 of 2023, which ended on December 31st, 2023. The company’s consolidated revenue for the quarter was 67.78 trillion won (around $50.78 billion). This is a decrease of 3.8% YoY but an increase of 0.56% QoQ. Samsung’s operating profit for this quarter was 2.82 trillion won (around $2.11 billion. This is down by 34.5% YoY, mainly due to uneven chip demand.It is the fourth consecutive quarter in which Samsung has seen a decline in operating profit.
Meanwhile, the MX and Networks businesses had a consolidated revenue of 25.04 trillion won, which is a decrease of 6.91% YoY. However, the division’s operating profit was 2.73 trillion won.
Samsung’s mobile devices business saw a 2.73 trillion won operating profit in Q4, up from 1.7 trillion won a year earlier due to stronger demand for expensive smartphones, increased tablet shipments, and a higher demand for wearable devices during the holiday season.
In 2023, Apple is said to have become the world’s top seller of smartphones, with a 20% market share. However, Samsung plans to increase its flagship smartphone shipments and maintain its leadership in foldable phones.
Samsung’s MX division plans to boost sales by promoting its latest Galaxy S24 series. The company aims to establish itself as a leader in the AI smartphone market by highlighting the series’ advanced AI capabilities and improved competitiveness. Additionally, the company says that it will strengthen its partnerships with carriers to achieve its sales targets.

Samsung expects a boost to its chip business this year

Samsung expects a growing demand for chips in mobile devices and PCs due to the increasing use of AI. Despite potential obstacles, the company predicts the memory market will continue to recover in 2024. In Q4 2023, Samsung’s operating profit fell to 2.8 trillion won (around $2.11 billion), but losses shrank due to Chinese manufacturers restocking chips and rising memory chip prices.
The company plans to focus on cutting-edge chips, such as high bandwidth memory (HBM) and server products used for generative AI, and is aiming to catch up with rival SK Hynix in memory chips used for generative AI.
The South Korean electronics giant notes that its chip contract manufacturing, TV, and home appliance units are still vulnerable to weak consumer demand.
Samsung’s consolidated revenue for 2023 was 258.94 trillion won ($193.98 billion approx.), down 14.32% YoY. Operating profit was 6.57 trillion won (around $4.92 billion.), down 84.85% YoY.