Samsung posts record revenue in 2022, but dwindling profits
Samsung published its financial results for the final quarter of 2022 and the fiscal year, and once again, it managed to reach record revenue for the full 12 months – KRW 302.23 trillion (about $244 billion). This is an 8% increase compared with 2021; however, operating profit was KRW 43.38 trillion, 15% less than it was the previous year.
The Q4 period was underwhelming for the Korean company, as it recorded a decline in sales in virtually all divisions because of weak demand caused by the global economic slowdown.
The Mobile Experience (MX) division saw a 9% YoY decline in revenues in Q4, but the full year saw 10% more sales than the year before that. Profits fell across the board though – lower both sequentially and year-on-year for the final quarter and lower for the full years. Samsung confirms the mass market contracted sharply because of “inflation and geopolitical instability”.
While demand for Galaxy smartphones was unexpectedly weak in the holiday quarter, flagships still held strong relative to market projections. Samsung expects the downward trend to continue in Q1 2023, but things will eventually turn around after the launch of the Galaxy S23 series. The new flagships, scheduled to arrive tomorrow, will be “equipped with an enhanced camera and gaming functionalities.”
The upcoming year will remain tough, Samsung forecasted. Mass-market models will take the biggest hit, and the company will try to counter that with competitive deals through carriers, including expansion among first-time 5G users.
