Samsung has announced its projected earnings and sales for the fourth quarter of 2023, with an operating profit expectation of 2.8 trillion won and sales of 67 trillion won. This represents a 35% decrease in operating profit and a 5% decrease in revenue, marking the company’s best quarterly profit in a challenging year.
Despite the decline, Samsung’s performance in the chip market and consumer electronics demand remained strong. The company’s operating profit for the entire year of 2023 came in at 6.5 trillion won, down 85% from the previous year and its worst annual profit performance since 2005.
However, the rebound in memory chip prices during the October-December quarter has helped offset the chip division’s operating loss. Additionally, the fourth quarter is typically an off-season for consumer electronics and a fruitful quarter for component businesses like display and chips.
Analysts are optimistic about the company’s reduction in memory chip output and inventory, expecting a gradual recovery in memory chip demand throughout 2024. Demand for high-end DRAM is projected to remain strong due to continued spending on servers and data centers driven by the popularity of AI.