Samsung Revenues Dropped 12 Percent in Q3 But It Sees Growth Ahead

Samsung reported a net profit of $4.3 billion on revenues of $50 billion for the quarter ending September 30, 2023. The firm’s revenues were up 12 percent year-over-year (YOY), thanks to smartphone and premium display sales. But Samsung’s device solutions and memory businesses continued to drag on earnings.

Samsung’s Device Experience (DX) group—which includes its smartphone business—contributed $33 billion in revenues, a decline of 7 percent YOY. But DX revenues were up 9 percent quarter-over-quarter (QOQ), while smartphone sales specifically were up 17 percent. And Samsung feels that smartphone sales will improve again in the current quarter and then grow in 2024.

Samsung’s Device Solutions (DS) group–which contains its semiconductor and displays businesses—contributed another $12 billion in revenues, a decline of 29 percent YOY. But here, again, Samsung saw positive QOQ growth, and it expects that trend to continue.

“Looking ahead to 2024, PC and mobile demand is likely to benefit from the arrival of some replacement cycles for products sold during the initial phase of the pandemic,” Samsung noted. “The high-density DRAM trend in the flagship and high-end segments is expected to continue due to the spread of On-Device AI.”