Samsung reports 34 percent YoY decline in operating profit for Q4 of 2023

(MENAFN) On Wednesday, Samsung, the leading global electronics company, reported a significant 34 percent year-on-year decline in operating profits for the fourth quarter of 2023. This dip was attributed to sluggish demand for televisions and other consumer electronic products, which overshadowed the hard-fought gains in the slowly recovering chip market.

Despite the challenges faced in the fourth quarter, Samsung remains optimistic about its performance in 2024. The company anticipates an upswing in demand for semiconductors, particularly those powering artificial intelligence equipment increasingly integrated into smartphones, personal computers, and other technological products. However, lingering macroeconomic uncertainties may continue to exert influence on Samsung's business in the short term.

In concrete figures, Samsung's operating profit for the three months ending December 2023 reached 2.8 trillion won (USD2.1 billion), a notable decrease from the 4.3 trillion won (USD3.2 billion) achieved during the same period in the preceding year. The cumulative operating profits for the entire year 2023 amounted to 6.5 trillion won (USD4.8 billion), reflecting an 85 percent decline from the profits recorded in 2022. This marks Samsung's lowest profit level since 2008, a year marked by a global financial crisis that impacted markets worldwide.

Within the company's diverse portfolio, the semiconductor division faced notable challenges, registering a loss of 14.9 trillion won (USD11 billion) for the entirety of 2023. However, there was a positive turn in the fourth quarter, with the "Dynamic Random Access Memory" (DRAM) segment returning to profitability. Samsung's strategic focus on semiconductor technologies remains pivotal as it navigates the intricate landscape of consumer electronics and positions itself for potential growth in the ever-evolving tech market.

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