Samsung Electronics has reported better-than-expected results for the fourth quarter, showcasing a robust performance amidst challenges in its semiconductor business. The company's revenue for the quarter reached 75.8 trillion Korean won, surpassing its own guidance of 75 trillion Korean won. However, the operating profit stood at 6.5 trillion Korean won, slightly below the anticipated 6.8 trillion.
In contrast to expectations, Samsung's fourth-quarter revenue represents a 12% increase from the same period last year, while operating profit surged by approximately 130% year-on-year. Despite these achievements, the company's earnings might be constrained due to ongoing weaknesses in its semiconductor operations. Samsung, a leading manufacturer of memory chips used in laptops and servers, reported that these challenges affected its overall profit margins.
In 2023, Samsung posted an annual revenue of 258.94 trillion Korean won, with an operating profit amounting to 6.57 trillion Korean won. For the entire year, the company reported a total revenue of 300.9 trillion Korean won and an operating profit of 32.7 trillion won. This annual performance highlights Samsung's resilience, as its revenue reached the second-highest on record.
"Although fourth quarter revenue and operating profit decreased on a quarter-on-quarter (QoQ) basis, annual revenue reached the second-highest on record, surpassed only in 2022," – Samsung
Looking ahead, Samsung is set to pursue growth through advancements in artificial intelligence smartphones and other premium devices. The company remains the world's second-largest player in the smartphone market and continues to leverage its expertise in high-value-added products to drive sales growth in premium segments.
"For 2025 as a whole, the Company plans to enhance technological and product advantages in AI, continue to meet future demand for high-value-added products and drive sales growth in premium segments," – Samsung