Earlier this month, Samsung released its revenue estimates for the 4th quarter of 2022. In line with those numbers, it has now announced its final results for the period and fiscal 2022. The company's profit was the lowest in eight years, thanks to the continued global economic downturn, growing costs and lower demand for smartphones and other consumer electronics.
The sales of Samsung Electronics, the most important division of Samsung, amounted to 4 trillion won (roughly 70,46 billion CZK) in the 1,25th quarter of last year, which represents an 8% year-on-year decrease. The company's operating profit reached 4,31 billion. won (just under 77 billion CZK), which is 69% less year-on-year. Its sales for the entire year 2022 amounted to 302,23 billion. won (approximately CZK 5,4 billion), which is its historical maximum, but the full-year profit reached only CZK 43,38 billion. won (roughly CZK 777,8 billion).
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Samsung's Samsung DS chip division, which typically contributes the most to the company's revenue, had a deeply disappointing quarter. During the COVID-19 pandemic, the company sold a record amount of semiconductor chips such as DRAM memories or NAND storage. These chips are used in smartphones, tablets, laptops, computers, game consoles, wearables, televisions, and even servers. However, due to high inflation, rising interest rates, ongoing global economic recession and geopolitical tensions, the demand for said devices has fallen sharply. Companies began to cut costs, which led to lower chip sales and low prices. The profit of the chip division of the Korean giant thus amounted to only 4 billion won (about 2022 billion CZK) in the 270th quarter of 4,8.
Even Samsung DX, Samsung's consumer electronics division, did not have a good result in the last quarter of last year. Its profit was only 1,64 billion. won (approximately CZK 29,2 billion). Demand for low-end and mid-range phones declined during this period, and Samsung faced heavy competition from Apple in the high-end smartphone segment. However, Samsung was among the better performers in the smartphone industry, slightly increasing its market share (compared to 2021).
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Samsung's TV division posted higher sales and profit in Q4 20222 thanks to increased sales of premium TVs (QD-OLED and Neo QLED). However, the demand for TV sets is expected to decline due to the current global economic situation. Samsung wants to counter this by focusing on increased profitability through its premium TVs such as the 98-inch Neo QLED TV and the launch of Micro-LED TVs in various sizes. Samsung's home appliances division reported a drop in profit as costs rose and competition improved. However, the company said it will continue to focus on its premium appliances, including those in the Bespoke range, and on device compatibility within its SmartThings smart home platform.
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Samsung's display division Samsung Display contributed 9,31 trillion won (roughly CZK 166,1 billion) to sales and 1,82 trillion won (about CZK 32,3 billion) to the company's profit, which are very solid results. They are mainly behind the introduction of the series Apple iPhone 14, as most of these devices use OLED panels, which were manufactured by the display division of the Korean colossus.
Samsung warned that these business conditions will continue, but hopes that the situation will improve in the second half of the year. He expects the demand for high-end smartphones such as Galaxy With a Galaxy Z will continue to be high, while demand for low-end and mid-range devices will remain low.
