On January 31, Samsung Electronics officially released its financial results for the fourth quarter of 2023 and the full year of 2023. Although in 2023, Samsung Electronics' operating profit will be 657 trillion won (about 354 yuan.)600 million yuan), a year-on-year increase of **8486%, but the performance in the fourth quarter has improved significantly compared with the third quarter, especially the net profit far exceeded market expectations.
According to the financial report, in the fourth quarter of 2023, Samsung Electronics' sales will be 6778 trillion won (about 3,646.)5.6 billion yuan) down 381% and an operating profit of 282 trillion won (about 151.)7.2 billion yuan) decreased by 344%, which is broadly in line with the guidance issued earlier this month. However, in terms of net profit, Samsung Electronics achieved a profit of 602 trillion won, far exceeding market expectations of 316 trillion won.
According to the performance of each department in the fourth quarter of 2023:
The Digital Solutions (DS) division, which is responsible for the semiconductor business, generated sales of 2169 trillion won, operating loss narrowed to 218 trillion won (about 11.7 billion yuan). For comparison, the DS division reported an operating loss of 458 trillion won, compared to 436 trillion won, compared to 375 trillion won.
Affected by the effect of memory production reduction and the decline of the company, the loss scale of Samsung Electronics' semiconductor business narrowed significantly quarter-on-quarter, of which dynamic random access memory (DRAM) turned a profit for the first time in four quarters. However, the annual loss of the entire semiconductor business is still as high as 1488 trillion won (about 800 yuan.)500 million yuan).
Samsung Electronics said its memory chip business has strengthened significantly as customers have reduced inventories to healthy levels. However, due to the decrease in demand for applications such as mobile phones, the business of the System Semiconductor division did not improve. However, Samsung Electronics expects that as AI applications expand, mobile and PC manufacturers will install more and better chips in their devices, and the need to replace old servers will also help the chip market gradually recover.
"Despite various potential troubles such as monetary policy and geopolitical issues, the memory business is expected to continue to recover in 2024," Samsung said in a statement. ”
The Device Experience (DX) segment generated sales of 3955 trillion won, operating profit of 262 trillion won. Sales and operating profit in the Mobile Experience (MX) segment, which is responsible for smartphones, declined sequentially as smartphone sales declined due to the waning effect of new product launches. In addition, Samsung's TV and home appliance business performance was sluggish due to reduced demand and increased competition.
Data from market analyst agency IDC also shows that due to the decline in Samsung's smartphone sales, the position of the world's largest smartphone manufacturer has changed from Samsung to Apple last year.
The financial report also showed that the investment in facilities in the fourth quarter of last year was 164 trillion won, of which 14 trillion will be invested in semiconductors9 trillion won, 800 billion won for displays. The annual investment in facilities was 531 trillion won, unchanged from the previous year.
From a full-year perspective, Samsung Electronics' full-year sales in 2023 will be 25894 trillion won, a decrease of 14 percent year-on-year33% and an operating profit of 6567 trillion won (about 35.4 billion yuan), a year-on-year increase of **8486%, the lowest since the 2008 financial crisis. Net profit was 1549 trillion won, down 7217%。
Editor: Xinzhixun-Rogue Sword.