Samsung hopeful about Galaxy AI smartphones, despite slumping Q4 profits

Samsung today announced financial results for the fourth quarter and the fiscal year 2023. The company flagged its fourth straight quarter of slumping profits, posting a 35% drop in profit. Meanwhile, Samsung is hopeful about Galaxy AI smartphones as the key to recovery.

In the first quarter of 2024, smartphone market demand is expected to decline sequentially due to seasonality. The MX Business plans to leverage Galaxy S24 series, which brings advanced AI capabilities and enhanced product competitiveness — to expand sales of flagship products.

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The South Korean tech giant posted KRW 67.78 trillion in consolidated revenue and KRW 2.82 trillion in operating profit in the quarter ended December 31, 2023. For the full year, it reported KRW 258.94 trillion in annual revenue and KRW 6.57 trillion in operating profit.

Fourth-quarter revenue and operating profit increased from the third quarter based on improved performance in Memory due to higher prices, and continued strength in sales of premium display products. This quarter, Samsung will focus on improving profitability by increasing sales of premium products.

The component businesses aim to meet demand for advanced products and those aimed for generative AI while the Device eXperience (DX) Division will strengthen AI features in smartphones and other consumer products.

Samsung will meet demand for semiconductors for AI applications and expand into AI-enabled consumer product markets. Besides, the company will strengthen its leadership in premium products and competitiveness in advanced-node semiconductors.

// Samsung