Samsung Electronics, a South Korean technology giant, faced challenges in the last quarter of 2023, resulting in a 34% decline in annual operating profit. Sluggish demand for TVs and other consumer electronics products offset gains from a slowly recovering computer chip market.
Despite these difficulties, Samsung remains optimistic, predicting improved business conditions throughout 2024. The company anticipates increased demand for semiconductors, particularly those supporting artificial intelligence features found in smartphones, personal computers, and other devices.
Samsung reported an operating profit of 2.8 trillion won ($2.1 billion) for the three months ending in December 2023, compared to 4.3 trillion won ($3.2 billion) during the same period in 2022. The full-year operating profit for 2023 reached 6.5 trillion won ($4.8 billion), marking an 85% decline from 2022 and the company's lowest since the 2008 financial crisis.
While the semiconductor division faced losses of 14.9 trillion won ($11 billion) in 2023, the fourth quarter showed signs of improvement with the DRAM business returning to profitability. Samsung plans to expand its production capacity of advanced memory chips in 2024 to meet growing demand driven by AI.
The company expressed confidence in the memory business, anticipating continued market recovery despite challenges such as interest rate policies and geopolitical issues. Additionally, Samsung aims to boost sales of its latest smartphone, the Galaxy S24, which features AI-powered capabilities such as live translation during phone calls in multiple languages and dialects.