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Samsung’s Q4 profits plummet 69 percent, hit 8-year low

by News Desk
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Expanding / Samsung’s regional headquarters in Mountain View, California.

Getty Images/Smith Collection

Samsung Electronics is set to launch a big phone this week, but before that, let’s check out the company’s final quarter.follow the trends of industry as a wholeSamsung’s earnings look like disaster.

The company’s revenue dropped to KRW 70.5 trillion ($57.3 billion) in Q4 2022, down 8% from Q4 2021, but it doesn’t look too bad. However, Q4 profit plummeted 69% year-on-year to KRW 4.3 trillion, or $3.5 billion. This is his lowest level in eight years. Q3 2014,

Samsung Electronics manufactures almost all electronic devices such as mobile phones, tablets, TVs, laptops, memory chips, SoCs, displays, camera sensors, batteries, etc. and all the components in one of those devices. increase. direction of the general economy.

Samsung said, “The business environment in the fourth quarter deteriorated significantly due to sluggish demand due to the slowdown of the global economy. [the Exynos division] In addition, industry destocking squeezed sales of key products, reducing revenue. “

In addition to memory, Samsung warned that demand for smartphones is a declining business. The recession has hit both his own-brand Galaxy mobile phone division and the display division that supplies displays for most smartphones.

It’s not all bad news for Samsung. Despite an underwhelming fourth quarter, the company was able to weather 2022 with record earnings. The foundry business posted record sales in the fourth quarter, and television sales also increased.

Samsung’s press release also mentions the Galaxy S23 launching this Wednesday, but we’re not sure if that helps Samsung. The S23 lineup is almost identical to his S22, but with updated specs.

Several report Samsung is raising prices in some regions, which it says could make 2023 even tougher for Samsung. One case Prices from Spain are up €100 ($108) across the board, with the base model S23 starting at €959 ($1,042) and the S23 Ultra starting at €1,409 ($1,530). !” logic. This may not help as the economic climate has slowed smartphone sales and consumers are sticking with their phones longer than ever before.

“In 2023, Samsung expects the effects of the recession to continue for the foreseeable future,” the company said. “However, an analysis of smartphone buying patterns suggests that demand will continue to polarize between premium and budget smartphones.”

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