Samsung Electronics has provided guidance on its financial performance in the fourth quarter of 2023 and its outlook for 2024. Samsung’s operating profit likely fell by 35% in the fourth quarter compared to the same period the previous year, continuing a slump that has been affecting the memory chip industry. Despite this decline, the company saw a significant improvement from the third quarter, driven by increased demand for memory chips. Samsung’s estimated operating profit for the quarter was 2.8 trillion won ($2.1 billion), with revenues of 67 trillion won, marking a 4.9% decline from the previous year.
For the entire year of 2023, Samsung’s operating profit likely plummeted by 84.9%, and its revenue dropped by 14.6%. Despite these challenges, analysts predict that Samsung’s performance will improve in 2024, thanks to a recovery in chip prices and increased demand driven by the growth in artificial intelligence and high-bandwidth memory semiconductors. Samsung is unveiling its first AI-powered smartphone in the US, which will be part of its Galaxy S series.
