Samsung’s fourth quarter revenue dips from poor chip and smartphone gross sales

Samsung’s fourth quarter revenue dips from poor chip and smartphone gross sales
Samsung’s fourth quarter revenue dips from poor chip and smartphone gross sales

Samsung noticed its revenue drop considerably through the fourth quarter from poor gross sales of reminiscence chips and the continued slowdown in progress within the smartphone market.

The South Korean tech big mentioned on Tuesday that it recorded 4.31 trillion received in working revenue and 70.46 trillion received in income within the fourth quarter of 2022. Working revenue dipped 69% year-on-year and income dropped by 8% over the identical time interval.

Samsung’s chip enterprise, or the Gadget Options Enterprise, its traditional money cow, contributed a meager 270 billion received in working revenue __ primarily barely breaking even.

The corporate mentioned it noticed unit costs of reminiscence chips drop considerably from the valuation lack of its stock whereas clients additionally purchased fewer chips to regulate their very own inventories.

Samsung is not the one reminiscence chipmaker feeling the brunt of this value drop; Micron reported a internet lack of $195 million in its newest fiscal quarter and SK Hynix can be anticipated to report an working loss.

In the meantime, Samsung’s shopper electronics enterprise, or the Gadget Expertise Enterprise, additionally carried out poorly, recording 1.64 trillion received in working revenue.

For its cell enterprise, the corporate mentioned it noticed each income and revenue drop as a result of general slowdown in smartphone gross sales and weak demand for low- and mid-tier smartphones.

However Samsung Show, Samsung’s show panel maker, carried out solidly, contributing 1.82 trillion received. The unit targeted on high-end smartphone merchandise regardless of market demand persevering with to contract, Samsung mentioned.

The South Korean tech big did not straight point out its clients however the excessive revenue possible comes from stable gross sales of Apple’s iPhone 14 collection, which makes use of OLED show panels made by Samsung Show.

For the whole 12 months of 2022, regardless of its weak fourth-quarter earnings, Samsung recorded 302.23 trillion received in income, a rise of 8% from a 12 months in the past. Working revenue was 43.38 trillion received, a drop of 8% year-on-year, regardless of the worldwide financial downturn and the Russia-Ukraine conflict.

For 2023, Samsung mentioned that whereas macroeconomic uncertainties will persist, shopper demand is predicted to begin recovering through the second half of the 12 months.

For chips, it’s going to concentrate on superior nodes and merchandise, whereas in smartphones it anticipated demand to proceed to polarize between premium and low-tier smartphones, that means demand for high-priced telephones will proceed.