Samsung shared its Q4 2022 report – stating a sharp decline in its most profitable businesses.
The company posted declined sales in both smartphone and chip sections, which earned billions for Samsung over the years. Blaming the ongoing economic downturn, the South Korean giant said it continues to see a weakened demand for chips and budget phones throughout 2023.
Samsung Q4 2022 Statistics
Though Samsung is in many business vectors, the smartphone and chip making are two of the most profitable wings it got for years – where it earns hundreds of billions of dollars every year.
But last year was a downfall, as Samsung posted weak profits for the last quarter of 2022. In its report, the company noted earning KRW 302.23 trillion (US$245.4 billion) in 2022 annual revenue – which itself is a new record for the company – but a declined operating profit of KRW 43.38 trillion (US$35 billion).
To compare, Samsung posted an operating profit of KRW 8.5 trillion (US$6.9 billion) for 2021. Further, the company noted a consolidated revenue of KRW 20.07 trillion (US$16.3 billion) for its semiconductor business in Q4 2022, down from KRW 26.01 trillion (US$21.6 billion in early 2022’s conversion rates).
And the operating profit, on the other hand, has fallen too. Samsung earned KRW 0.27 trillion (US$219 million) in Q4 2022, down from KRW 8.84 trillion (US$7.35 billion) in Q4 2021. Citing the global economic slowdown as the cause, Samsung said it’s bracing for this downward trend to continue throughout the next few months!
Although, it expects a rise in demand for its semiconductors in the second half of 2023 as the market is adjusting rapidly to changes. Though it’s losing profits in the budget range smartphone segment, it’s optimistic about the demand for its premium smartphones and pledged to strengthen “the competitiveness of its premium flagship products.”