According to foreign media reports, Japan's Sony Group's operating profit surpassed Samsung Electronics for the first time in 24 years. Just 14 years ago, the combined operating profits of Japan's nine largest electronics companies were less than half of that of Samsung Electronics. However, with Sony's strong performance last year, Sony's operating profit is expected to surpass Samsung Electronics by about 3 trillion won.
Sony According to the 2023 results** announced by Sony Group and Samsung Electronics, Sony is expected to have an operating profit of 117 trillion yen (79.)$500 million), than Samsung Electronics' 749 trillion won (56.)$200 million) is more than 3 trillion won. This marks the first time in 24 years since 1999 that Samsung Electronics' operating profit has lagged behind Sony. Looking back on 2018, Samsung Electronics 5889 trillion won vs. Sony 8The operating profit gap of 07 trillion won is as high as 50 trillion won. However, the situation has reversed in the last five years.
According to expert analysis, the temporary downturn in Samsung Electronics' performance is the result of the recession in the semiconductor market. With Samsung Electronics' performance expected to pick up this year, many expect it to catch up with Sony again.
However, analysts say the fact that South Korea's largest company has lagged behind Japan's leading electronics company in operating profit for the first time since the 2000s, and the event is significant.
In 2009, the combined operating profit of nine major Japanese electronics companies, including Sony, Panasonic and Hitachi, was less than half of that of Samsung Electronics. Among them, Sony's operating losses in 2008 and 2011 were 227.8 billion yen and 67.3 billion yen, respectively, but in 2022, revenue exceeded 10 trillion yen for the first time, reaching 1154 trillion yen. Last year it was expected to increase further to 124 trillion yen.
Experts attribute the resurgence of Japanese companies such as Sony and Hitachi to factors such as globalization, business restructuring, digital transformation, and aggressive mergers and acquisitions. They said the two companies streamlined large-scale operations through bold business restructuring and improved information technology (IT) competitiveness and global market share through aggressive M&A activity. Last year, Sony Group reduced its "electronics business, which accounted for 68% of 2012 revenue but failed to generate profits," to 34%. At the same time, the share of the lucrative entertainment business increased from 17% to 51% in the same period.
With this performance growth, Sony's share price on the Tokyo Exchange has accumulated 1058%, more than the same period **8The Nikkei 225 rose by 34%.
So, Sony or Samsung, who are you more optimistic about?