Samsung stories its lowest yearly revenue since 2008

What simply occurred? Samsung has simply posted its newest monetary outcomes, and it is not excellent news. The South Korean tech large skilled its fourth consecutive quarterly revenue decline throughout the vacation season, whereas working revenue for the complete 12 months was down 85% in comparison with 2022, marking Samsung’s worst 12 months because the monetary disaster of 2008.

Samsung reported 258.94 trillion received ($194 billion) in annual income and 6.57 trillion received ($4.9 billion) in working revenue for the fiscal 12 months of 2023. That latter determine was nearly seven occasions decrease than the $32.5 billion Samsung generated in 2022.

The corporate mentioned internet revenue fell 74% within the final three months of the 12 months to six.02 trillion received ($4.5 billion), after its chip operations posted a lack of 2.18 trillion received, which was bigger than analysts’ expectations.

Samsung wrote that whereas macroeconomic uncertainties are anticipated to proceed into 2024, the reminiscence market and demand for IT are anticipated to proceed restoration.

Regardless of being the fourth quarter in a row that it skilled a revenue decline, Samsung’s This fall income and working revenue elevated from the third quarter, one thing the corporate attributes to improved efficiency within the reminiscence section resulting from larger costs, together with continued power in gross sales of premium show merchandise.

Wanting on the first quarter of 2024, Samsung plans to enhance its earnings by rising gross sales of high-value-added merchandise. It cites its part enterprise assembly demand for superior merchandise and people aimed toward generative AI for instance. It additionally writes that the Gadget eXperience (DX) Division will strengthen AI options in smartphones and different client merchandise; the lately revealed Samsung S24 sequence has a heavy AI focus.

Samsung mentioned final 12 months that it plans to double its manufacturing capability of superior high-bandwidth reminiscence chips in 2024 to fulfill AI demand. “In 2024, the reminiscence enterprise expects the market to proceed to get well regardless of numerous potential obstacles, together with rate of interest insurance policies and geopolitical points,” the corporate mentioned in an announcement.

Samsung expects earnings within the first half of 2024 to point out a average enchancment, with a extra important enhance within the second half of the 12 months.