Samsung’s revenues hit their lowest level in eight years

Samsung, like other technology companies, is going through a difficult process. The firm recently released data for the last quarter of 2022. According to the statements, Samsung’s profit has fallen to the lowest point in eight years. This is due to the ongoing global economic downturn, rising costs and reduced demand for smartphones and other consumer electronics.

Although Samsung broke a record in 2022, profitability fell

In the quarter ending December 31, 2022, Samsung Electronics’ revenue was $57.21 billion, down 8 percent from the fourth quarter of 2021. The company’s operating profit in this period fell by 69 percent compared to 2021, reaching $3.5 billion. Samsung’s 2022 revenue was a record $245 billion, but full-year profit was only $35.22 billion.

The semiconductor division was disappointing

Samsung DS, Samsung’s chip division, which is generally the biggest contributor to the company’s revenue, had a disappointing quarter. During the COVID-19 pandemic, the company sold record levels of semiconductor chips in products like DRAM and NAND storage. These chips have been used in smartphones, tablets, laptops, PCs, game consoles, wearables, TVs and even servers.

But demand for these consumer electronics devices has fallen sharply due to high inflation, rising interest rates, the ongoing economic recession and geopolitical tensions. Businesses began cutting costs, resulting in lower chip sales and lower chip prices. Therefore, Samsung DS’ Q4 2022 operating income was only $219 million. This figure was $7.35 billion in the fourth quarter of 2021.

Display sales increased thanks to iPhone 14

Samsung DX, Samsung’s consumer electronics unit, also performed poorly in the last quarter of 222. The consumer electronics division contributed just $1.33 billion to the company’s profits. Unlike Samsung’s other business segments, Samsung Display performed solidly in Q4 2022. This division of the firm contributed approximately $7.56 billion to Samsung’s revenue and $1.47 billion to its profits. The main reason for this can be considered as Apple’s launch of the iPhone 14 series in Q4 of 2022. Because most of these devices use OLED panels produced by Samsung Display.

The South Korean tech giant warned that these business conditions will continue, but it hopes the situation will improve in the second half of 2023. Samsung will introduce the Galaxy S23 series tomorrow. This series is expected to boost sales.