Samsung Faces Continued Profit Decline in 2023, Annual Report Reveals
Samsung failed to rebound from a steep profit decline in 2022, posting its weakest earnings in over a decade. For the 2023 fiscal year, Samsung reported $194 billion in revenue and $4.9 billion in operating profit – down significantly from 2022’s $35 billion profit that was already $6.9 billion lower than the prior year.
The company blames persistent weak demand plaguing its memory chip and smartphone sales. While its memory business showed some recovery signs, it still incurred $1.63 billion in losses for Q4 2023. Its consumer electronics division also posted losses despite holiday TV sales. And its mobile division saw declining smartphone sales and fading demand for older flagship models.
For 2024, Samsung aims to lift profits by pushing high-value components, especially for AI products, while hoping for a demand rebound. But with customers still working through inventories, earnings likely won’t recover substantially soon. One bright spot is high hopes for the new Galaxy S24 series to achieve double-digit mobile growth, thanks to built-in AI capabilities. The S24 lineup released last month starts at $800, reaching $1,300 for the top-tier Ultra.
After last year’s historic profit plunge, Samsung sees a prolonged climb back towards prosperity at best over 2024. For now, lackluster demand continues inflicting serious pain.