Samsung expects its 2023 profit to drop by 85% compared to last year
Last year was extremely challenging for Samsung, as smartphone and semiconductor chip sales were quite low. Those are the two most important product categories for Samsung. However, the company and even analysts expect this new year to be much better as sales are recovering. Today, Samsung Electronics posted its earnings guidance for the fourth quarter of 2023. These are just the company’s estimates; the final numbers will be posted later this month.
Samsung’s Q4 2023 revenue is almost flat compared to Q3 2023
According to Samsung’s own estimates, its revenue (sales) in the fourth quarter of 2023 would be around KRW 67 trillion ($51 billion). Out of that, the company’s operating profit would be around KRW 2.8 trillion ($2.13 billion). Those figures are very similar to the company’s numbers from Q3 2023, when it posted revenue of KRW 67.4 trillion ($51.36 billion) and a profit of KRW 2.43 trillion ($1.85 billion). In comparison, the profit has dropped 35% compared to the fourth quarter of 2022, and that’s mainly due to weak sales of semiconductor chips.
For the complete year of 2023, Samsung Electronics’ revenue is expected to be KRW 258.16 trillion ($196 billion), and the profit could be KRW 6.54 trillion ($4.89 billion). This is the first time in the past 15 years that the company’s annual profit has dropped below the KRW 10 trillion ($7.6) mark. It is also the first time the South Korean firm’s semiconductor division posted an operating loss in its entire history.
Once again, Samsung’s smartphone division has come to the rescue. It is estimated that Samsung MX (the company’s mobile division) has posted solid revenue and profits despite a weakened smartphone market. That’s due to higher sales of high-end phones like the Galaxy S23, Galaxy Z Flip 5, and Galaxy Z Fold 5.
Samsung will launch its next-generation flagship smartphone lineup, the Galaxy S24, on January 17, 2024. Moreover, it is also planning to launch the Galaxy Z Flip 6, Galaxy Z Fold 6, Galaxy Tab S10, and an XR headset in the second half of this year. All these high-end products could improve the company’s profits. It is also set to gain quite a bit by supplying display panels for current and future iPhones, future iPad Pros, and several new laptops and monitors.
