Samsung Revenues Fell 8 Percent in Q4

Electronics giant Samsung reported that it earned an operating profit of $3.5 billion on revenues of $57.1 billion in the quarter ending December 31. That represents its lowest quarterly profit since 2014 and revenues were down 8 percent. But Samsung’s full year 2022 was still quite positive: the firm earned an operating profit of $45 billion on revenues of $244.8 billion, a record.

“The business environment deteriorated significantly in the fourth quarter due to weak demand amid a global economic slowdown,” the Samsung earnings report notes. “The Company plans to expand its leadership in the premium smartphone segment with the launch of Galaxy S23 while the Networks Business will focus on the domestic and overseas businesses, including North America.”

Despite the economic headwinds, Samsung said that it has no plans to slow its investments in memory chips, displays, and other core businesses. Instead, its capital spending will remain on par with 2022 as it makes “short-term” production cuts. “While the macroeconomic uncertainties are expected to persist, the Company anticipates demand to begin recovering in the second half,” Samsung said.

Samsung will launch its new lineup of flagship smartphones at a Galaxy Unpacked event tomorrow. Despite this, analysts expect smartphone sales to continue falling throughout 2023.