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Samsung Electronics Q4 2022 Results Show Record Sales Despite Global Slowdown.

Photo by Babak Habibi / Unsplash

Samsung Electronics (KRX: 005930) announced fourth-quarter 2022 revenue of KRW 70.46 trillion (US$57.3 billion) and an operating profit of KRW 4.31 trillion (US$3.5 billion).

The global economic slowdown and weak demand affected sales for the quarter, which were down 8.2% from the previous quarter.

However, on an annual basis, sales were still at a record high.

Sales of memory semiconductors declined in a challenging market, while foundry semiconductors recorded the highest quarterly sales.

Operating profit decreased compared to the previous quarter due to declining sales of MX smartphones, falling memory prices, and inventory valuation losses.

The Device Solutions business posted KRW 20.07 trillion (US$ 16.3 billion) in revenue and KRW 0.27 trillion (US$ 222 million) in operating profit.

Memory earnings declined due to price declines and inventory adjustments, while Foundry increased sales and profit thanks to advanced processes and a diverse customer base.

Samsung Display Co. reported sales of KRW 9.31 trillion (US$ 7.6 billion) and an operating profit of KRW 1.82 trillion (US$ 1.5 billion).

The small and medium segments suffered from declining smartphone demand, while the large part saw growth in QD-OLED TV sales and a decline in LCD inventory.

The Device Experience segment posted sales of KRW 42.71 trillion (US$34.6 billion) and an operating profit of KRW 1.64 trillion(US$1.3 billion).

MX reported declining revenues and profits due to slowing smartphone sales and weak demand in the mid-to-low end of the market.

At the same time, the network segment posted gains due to the rollout of 5G networks and expansion in North America.

The home appliance segment saw a decline in profitability, while Harman grew thanks to increased electronics sales and solid sales in consumer audio.

Sluggish global IT demand and weak semiconductor market conditions are expected to persist in Q1 2023.

The memory segment plans to prepare for DDR5 for servers and PCs while actively responding to the demand for high-capacity mobile products.

In addition, system LSI intends to expand sales of mid to low-priced Systems on Chip and 200 million pixel image sensors.

At the same time, foundry revenues are expected to decline due to declining demand and inventory adjustments by major fabless companies.

Samsung Display Co. plans to respond to the demand for new products in small and medium-size TVs and secure demand for large screens with new super-large TVs and large monitors.

MX plans to increase flagship sales and secure profitability through efficient resource management, while the network segment will focus on new business and strengthening its overseas business base.

VD plans to provide customers with a more valuable user experience through product competitiveness and connectivity between devices and to occupy the premium market with the 2023 Neo QLED line.

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