Samsung Electronics today depicts financial results for the fourth quarter, which is for FY 2022. While the company has posted KRW 70.46 trillion in aggregate revenue and KRW 4.31 trillion in operating profit for the last quarter of December 2022. While for the full year, it is reported as 302.23 trillion in terms of annual revenue.
This instant drop in business is due to weak demand of the global economic slowdown. This results in a decrease in the memory business sharply because of a fall in prices. Hence customers consistently adjust inventory. On the other hand, the System LSI Business also seems a decline.
As a part, of this, System Display Corporation (SDC) feels earnings in the mobile panel business declined since smartphone demand also reduce. Additionally, revenue and profit at the Mobile eXperience (MX) Business fall due to weak demand in the mid to low-end segment. Whereas, the network Business records an increase in revenue.
Also, the Visual Display Busines posted an increase in revenue and operating profit, since the sales of premium products. It includes Neo QLED and Super Big TVs, in contradict to it the Digital Appliances Business records a profit decline. The fortitude of the US dollar against the Korean won emanates in a positive impact of approx KRW 0.5 trillion.
Also, the recent change in Korean tax law along with revised taxation on dividends getting from subsidiaries results in a decline in the company’s corporate tax in the fourth quarter.
Semiconductor To Focus on High-end Product Demand in Q1
The semiconductor business posted KRW 20.07 trillion as aggregate revenue. While KRW .27 trillion in operating profit in the fourth quarter. The complete demand wakened as customers constantly adjusted their inventories.
The System LSI Business records its earnings fall in the fourth quarter due to sluggish sales. Additionally, Samsung will keep on striving in order to expand sales of low to mid-priced volume segment SoCs and 200MP image sensors.
Samsung pushing hard to win new customers for the 3nm second generation process, in order to aim towards the development of the first generation 2nm process.
Mobile Display records Solid Earnings
Talking about SDC, then it posted KRW 9.31 trillion in total revenue and KRW 1.82 trillion in operating profit for the fourth quarter. Also, the mobile display business acquires concrete results by focusing on high-end smartphone products.
Stepping ahead to the first quarter, Samsung predicted smartphone needs will tend to decline year-on-year because of economic slowdown in various parts.
MX To Expand Flagship Product Sales Amid Persistent Macro Uncertainties
Also, the MX and Network business records KRW 26.90 trillion and 1.70 trillion in operating profit for the fourth quarter.
Apparently, the market demand for smartphones was constantly weak in the fourth quarter. Whereas, the MX Business records a fall in both sales and profit quarter on quarter. Due to fading new product effects of flagship models, also a drop in smartphone sales.
Visual Display To Continue Focus on Premium and Lifestyle Products
Lastly, talking about the Visual Display and Digital Appliances businesses measure KRW 15.58 trillion as total revenue and KRW 0.06 trillion in operating loss for the fourth quarter.
In 2023, the complete TV demand is predicted to remain constant as market fluctuations are forecast to persist. Additionally, based on the requirement for high-end products, Samsung will aim at the ultra-large screen market. with 98″ Neo QLED.
Stay tuned to know more about Samsung tech via @Samnews24.