Samsung has reported its earnings for Q4 2023 that ended December 31, 2023 in which the company posted 67.78 trillion won (USD 50.78 billion approx.) consolidated revenue, down 3.8% YoY, up 0.56% QoQ.
It made an operating profit of 2.82 trillion won (USD 2.11 billion), down 34.5% YoY due to uneven chip demand. This is a decline for the 4th straight quarter.
For the whole of 2023, it posted 258.94 trillion won ($193.98 billion approx.) consolidated revenue, down 14.32% YoY. It made an operating profit of 6.57 trillion won ($4.92 billion approx.), down 84.85% YoY.
Samsung MX (Mobile eXperience) in Q4 2023
The MX and Networks businesses posted 25.04 trillion won in consolidated revenue, down 6.91% YoY. The division posted 2.73 trillion won in operating profit, up 60.58% YoY and down 17.27% QoQ.
Despite ongoing inflation and global political unrest, the smartphone market experienced modest growth in 4Q23, led by the premium
segment.
Sales and profit declined Q-Q due to decreased smartphone sales, which included fading effects of new products launched in the third quarter. However, tablet shipments grew significantly, led by newly released premium products, and wearable devices maintained their sales momentum during the peak holiday season.
Samsung MX Q1 2024 expectations
Although Samsung expects smartphone demand to decrease due to seasonality, the company expects premium segment likely to grow compared to the same period last year.
Regarding its plans for the MX business in Q1 2024, Samsung said:
MX will leverage its newly launched Galaxy S24 series to increase sales; and by emphasizing the series’ cutting-edge AI capabilities and enhanced competitiveness, alongside our efforts to strengthen our carrier partnerships, we aim to establish Samsung as the leading brand in the AI smartphone market.
While there are potential risks of rising component costs, we will strive to secure a double-digit operating margin by continuing to realize operational efficiencies in resources.
Samsung MX 2024 expectations
For the whole of 2024, Samsung expects consumer sentiment to stabilize and demand to rebound in anticipation of a soft landing for the global economy, leading to market growth, especially in the premium segment.
MX aims to lead the AI smartphone market by offering users an unparalleled level of creativity and hyper-personalized experiences, and by fortifying our leadership in the foldable segment.
Through this, Samsung said that it will boost its annual flagship shipments by over ten percent and achieve value growth that outpaces the market. MX will focus on premium lineups, and in wearables, and will expand lineups and enhance wellness functions.
Samsung aims to make Galaxy AI the global standard for mobile AI and said that it will strive to secure improved sales and stable profitability while investing in future technologies such as XR, Digital Health and Generative AI.