Picture illustration displaying the Samsung Group firm emblem displayed on a smartphone display screen.
Sopa Pictures | Lightrocket | Getty Pictures
Samsung Electronics on Friday reported better-than-expected fourth-quarter income, although its working revenue dropped sharply from the earlier three months attributable to greater R&D bills in its chips phase.
Listed below are Samsung’s fourth-quarter outcomes in contrast with LSEG SmartEstimate, which is weighted towards forecasts from analysts who’re extra persistently correct:
- Income: 75.8 trillion Korean gained ($52.2 billion) vs. KRW 75.4 trillion
- Working revenue: KRW 6.5 trillion vs. KRW 6.8 trillion
Income rose about 12% from the identical interval from final yr, whereas working revenue grew about 130%, yr on yr. Nonetheless, working revenue fell practically 30%, and income slipped by over 4%, quarter on quarter, amid comfortable market situations and a rise in firm expenditures.
Samsung shares fell 2.2% in South Korea on Friday morning.
Fourth-quarter income beat Samsung’s personal steerage of KRW 75 trillion, whereas working revenue got here according to the corporate’s forecast.
Samsung is a number one producer of reminiscence chips, that are utilized in units reminiscent of laptops and servers, and can be the world’s second-largest participant within the smartphone market.
“Though fourth quarter income and working revenue decreased on a quarter-on-quarter (QoQ) foundation, annual income reached the second-highest on file, surpassed solely in 2022,” Samsung mentioned in its assertion.
For the complete yr, Samsung reported KRW 300.9 trillion in income and KRW 32.7 trillion in working revenue. In 2023, the corporate posted an annual income of KRW 258.94 trillion and an working revenue of KRW 6.57 trillion.
For the present quarter, Samsung mentioned that earnings is perhaps restricted attributable to weak point in its semiconductor enterprise however that it might pursue progress by means of AI smartphones and different premium units.
“For 2025 as an entire, the Firm plans to reinforce technological and product benefits in AI, proceed to satisfy future demand for high-value-added merchandise and drive gross sales progress in premium segments,” it added.
Reminiscence enterprise
Samsung Electronics’ chip enterprise posted an working revenue of KRW 2.9 trillion within the fourth quarter, down over 25% from the three months ending in October, whereas its annual numbers got here in beneath that of SK Hynix.
This was regardless of Samsung’s reminiscence enterprise attaining a record-high fourth-quarter income of 30.1 trillion helped by demand for its superior reminiscence merchandise used for AI purposes.
“[O]perating revenue decreased barely in comparison with the earlier quarter because of elevated R&D bills to safe future know-how management, in addition to the preliminary ramp-up prices to safe manufacturing capability for cutting-edge nodes,” Samsung mentioned.
Samsung and SK Hynix each present DRAM, or dynamic random entry reminiscence, merchandise — a sort of semiconductor reminiscence wanted for information processing.
Nonetheless, SK Hynix has left Samsung behind in HBM, or excessive bandwidth reminiscence, a sort of DRAM, through which chips are vertically stacked to save lots of area and scale back energy consumption.
In accordance with Samsung, its reminiscence enterprise is slicing down legacy merchandise to raised align with market demand and rising its proportion of excessive value-added merchandise, reminiscent of HBM.
“In 2025, general reminiscence market demand is predicted to recuperate from the second quarter,” Samsung mentioned, warning that its earnings are anticipated to stay weak within the present quarter.
Smartphones
Samsung’s Cell eXperience and Networks companies, tasked with creating and promoting smartphones, tablets, wearables and different units, reported a quarter-over-quarter lower in gross sales and revenue.
Samsung mentioned the efficiency was partly as a result of fading results of recent flagship smartphone mannequin launches.
The phase noticed a consolidated income of KRW 25.8 trillion and an working revenue of KRW 2.1 trillion within the fourth quarter.
“Nonetheless, on a full-year foundation, flagship gross sales noticed strong progress on the again of double-digit progress of the Galaxy S24 collection that includes Galaxy AI, with tablets and wearables additionally rising in each worth and shipments,” Samsung mentioned.
Within the present quarter, Samsung plans to drive gross sales progress with new flagship fashions, significantly its newly launched Galaxy S25 collection and can proceed to push into the AI smartphone market.
