Photograph illustration exhibiting the Samsung Group firm emblem displayed on a smartphone display screen.
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Samsung Electronics on Friday reported better-than-expected fourth-quarter income, although its working revenue dropped sharply from the earlier three months as a consequence of increased R&D bills in its chips phase.
Listed below are Samsung’s fourth-quarter outcomes in contrast with LSEG SmartEstimate, which is weighted towards forecasts from analysts who’re extra persistently correct:
- Income: 75.8 trillion Korean gained ($52.2 billion) vs. KRW 75.4 trillion
- Working revenue: KRW 6.5 trillion vs. KRW 6.8 trillion
Income rose about 12% from the identical interval from final yr, whereas working revenue grew about 130%, yr on yr. Nevertheless, working revenue fell practically 30%, and income slipped by over 4%, quarter on quarter, amid tender market circumstances and a rise in firm expenditures.
Samsung shares fell 2.2% in South Korea on Friday morning.
Fourth-quarter income beat Samsung’s personal steerage of KRW 75 trillion, whereas working revenue got here according to the corporate’s forecast.
Samsung is a number one producer of reminiscence chips, that are utilized in gadgets comparable to laptops and servers, and can also be the world’s second-largest participant within the smartphone market.
“Though fourth quarter income and working revenue decreased on a quarter-on-quarter (QoQ) foundation, annual income reached the second-highest on report, surpassed solely in 2022,” Samsung mentioned in its assertion.
For the complete yr, Samsung reported KRW 300.9 trillion in income and KRW 32.7 trillion in working revenue. In 2023, the corporate posted an annual income of KRW 258.94 trillion and an working revenue of KRW 6.57 trillion.
For the present quarter, Samsung mentioned that earnings is likely to be restricted as a consequence of weak point in its semiconductor enterprise however that it will pursue development by means of AI smartphones and different premium gadgets.
“For 2025 as an entire, the Firm plans to boost technological and product benefits in AI, proceed to fulfill future demand for high-value-added merchandise and drive gross sales development in premium segments,” it added.
Reminiscence enterprise
Samsung Electronics’ chip enterprise posted an working revenue of KRW 2.9 trillion within the fourth quarter, down over 25% from the three months ending in October, whereas its annual numbers got here in under that of SK Hynix.
This was regardless of Samsung’s reminiscence enterprise attaining a record-high fourth-quarter income of 30.1 trillion helped by demand for its superior reminiscence merchandise used for AI purposes.
“[O]perating revenue decreased barely in comparison with the earlier quarter on account of elevated R&D bills to safe future expertise management, in addition to the preliminary ramp-up prices to safe manufacturing capability for cutting-edge nodes,” Samsung mentioned.
Samsung and SK Hynix each present DRAM, or dynamic random entry reminiscence, merchandise — a kind of semiconductor reminiscence wanted for knowledge processing.
Nevertheless, SK Hynix has left Samsung behind in HBM, or excessive bandwidth reminiscence, a kind of DRAM, by which chips are vertically stacked to avoid wasting area and scale back energy consumption.
In keeping with Samsung, its reminiscence enterprise is reducing down legacy merchandise to higher align with market demand and growing its proportion of excessive value-added merchandise, comparable to HBM.
“In 2025, general reminiscence market demand is predicted to get well from the second quarter,” Samsung mentioned, warning that its earnings are anticipated to stay weak within the present quarter.
Smartphones
Samsung’s Cellular eXperience and Networks companies, tasked with growing and promoting smartphones, tablets, wearables and different gadgets, reported a quarter-over-quarter lower in gross sales and revenue.
Samsung mentioned the efficiency was partially as a result of fading results of recent flagship smartphone mannequin launches.
The phase noticed a consolidated income of KRW 25.8 trillion and an working revenue of KRW 2.1 trillion within the fourth quarter.
“Nevertheless, on a full-year foundation, flagship gross sales noticed strong development on the again of double-digit development of the Galaxy S24 sequence that includes Galaxy AI, with tablets and wearables additionally growing in each worth and shipments,” Samsung mentioned.
Within the present quarter, Samsung plans to drive gross sales development with new flagship fashions, notably its newly launched Galaxy S25 sequence and can proceed to push into the AI smartphone market.
