As 2023 passes,SamsungElectronic's financial report reveals the challenges the company faces in a number of areas and its outlook for 2024. This article will focus on **SamsungElectronic business conditions, and to:Memory chipsThe market illustrates its recovery plan as an example.
Q4 2023,SamsungElectronics performance declined again, extending six consecutive quarters of poor performance. Compared to the same period last year,Operating profitand operating income fell by 35% respectively (2.).8 trillion won) and 49% (67 trillion won), much lowerAnalystsexpectations. According to news reports, in 2023,SamsungTotal electronsOperating profitThis is down about 85% year-on-year, reaching its lowest level since 2008. In the face of such a sluggish performance,SamsungElectronics faces challenges in several areas.
First of all,WafersOEM, mobile processors and home appliances were all lower than expected. GlobalWafersOEMMarket orders are weak, multipleWafersOEMFactories have lowered **,SamsungNot immune. This fierce market competition environment has led to the inevitable result of declining profits. AlthoughSamsungGAA technology in the 3nm process was adopted, but it failed to attract large customers to place orders, resulting inWafersOEMPoor performance of the business.
Second, mobile services are also challenging. AnalystsIt was noted that the decline in shipments of the two flagship foldable models had a negative impact on the performance. ReceivedQualcommUnder the influence of factors such as inflation, the home appliance market has also failed to do soSamsungElectronics bring good news. AlthoughSamsungStill isTVThe company is the leader in terms of shipments, but the decline in shipments has affected its market share to a certain extent. Foreign media commented thatSamsungElectronics have been taught a "miserable" lesson by reality.
WafersOEMYesSamsungA key area in the electronics business, but facing very high competition. Currently, globalWafersMarket orders are weak, not onlySamsungElectronic, OtherOEMFactories are also facing pressure to cut prices. In this context,SamsungInevitably, the profits of electronics have declined.
AlthoughSamsungElectrons inWafersOEMGAA technology in the 3nm process has been introduced in the field to invite customers to place orders, but so far, this initiative has not achieved the desired effect. This may be related to competitors, competitors, technological advancements, and changes in market demand. SamsungThe poor performance of electronics in this field has become the focus of attention in the industry.
In addition,SamsungThe mobile business of electronics also faces some challenges. According toAnalystsThe decline in shipments of the two flagship foldable models has had a certain adverse impact on the overall performance. Plus on a global scaleQualcommUnder the influence of factors such as inflation, the home appliance market has also been in a downturn. AlthoughSamsungElectrons still occupyTVShipment leadership, but its declining shipments have challenged its market share.
However,SamsungThe electronic storage business began to show signs of improvement in the fourth quarter of 2023 and became the company's bright spot. This business area is:SamsungElectronics offer a silver lining.
Recently, PC and mobile device manufacturers in China have begun to alignMemory chipsInventory replenishment was carried out, which promotedMemory chipsThe demand for the market is growing. According to Trendforce, Q1 2024dramContracts are expected to be 13% 18%, of which PCdramThe contract is expected to be 10% to 15%. This trend is:Memory chipsThe recovery of the market provided strong support.
Improvements in the storage business have also been obtainedSamsungCorroboration of electronic financial reports. Memory chipsThe earnings go withdramThe profitability of the business has improved. This positive performance is as follows:SamsungElectronics has brought a ray of light and enabled the company to maintain a certain competitive advantage in an unfavorable economic environment.
Recently,SamsungThe Device Solutions (DS) division for electronics has set itself an ambitious goal for 2024: to achieve 115 trillion wonOperating profit。This goal is jaw-dropping, because in 2023 alone, the DS sector is projectedOperating profitis minus 13 trillion won. As a result, the DS sector needs to increase by about KRW 25 trillion in a short period of timeOperating profitto accomplish this.
Some ** companies pay more attention to this goal and consider it to be significant. According to its **,SamsungDS DivisionOperating profitwill occupy the entiretySamsungElectronics totalOperating profitof one-third, which indicates the importance and potential of the sector. At the same time, there isAnalystsSamsungElectrons in 2024 totalOperating profitwill reach 33KRW 81 trillion, further emphasizing the importance of the DS sector's goals.
Memory chipsThe recovery plan of the market is:SamsungElectronics provides hope, and the improvement of the storage business has become a bright spot. However,SamsungThere is still a need to deal with itWafersOEM, mobile business and competitive pressure in the home appliance market. In the future,SamsungElectronics needs to continue to improve its technological advantages and increase R&D investment to maintain competitiveness in various fields and achieve sustainable development and growth of the business. Only then,SamsungElectronics can find their place in the competitive market and achieve long-term and stable success.