Samsung Galaxy Flip4
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Longtime Apple rival Samsung had an incredibly bad fourth quarter, with the global economic downturn responsible for a 69% drop in quarterly operating profit.
In the days before Apple’s announcement its own financial results for the most recent quarter, other technology companies also publish their results. In the case of Samsung, however, it is previously warned results are extremely strict, caused by a number of factors.
For the fourth quarter of the 2022 fiscal year, which ended in December, Samsung posted a record annual revenue of 302.23 trillion won ($245.4 billion), which in itself is a new all-time high for the electronics giant.
But in the same report, it said quarterly revenue fell nearly 8% year-on-year to 70.46 trillion won ($57.2 billion). Even worse, operating profit for the quarter was just 4.31 trillion won ($3.5 billion).
Operating quarterly profit is down 69% year-over-year from the same period last year, a significant drop in just 12 months. In addition, it is also the lowest operating profit for the organization since the third quarter of 2014, when the metric was reported as 4 trillion won.
According to the South Korean giant, it blamed “weak demand amid a global economic slowdown”.
The memory business saw a sharp decline due to declining prices and customer inventory adjustments. Samsung Display also saw its mobile panel revenue decline as demand for smartphones declined, but the larger panels used for OLED TVs increased, mitigating losses.
The Mobile Experience business, which includes smartphones, also declined a weak question for mid-to-low segments blamed for the changes brought about by “continued inflation and geopolitical instability”.
The Foundry business saw a year-over-year profit increase in the quarter due to diversification in its customer base and scope. But Samsung warns that capacity utilization for the branch has begun to fall due to inventory adjustments.
Samsung’s financials provide a dark background for February 1 Galaxy Unpacked event, launching a new Galaxy S series smartphone. Current speculation includes the addition of a satellite messaging system like Apple’s Emergency SOS via satelliteand a 200-megapixel camera.