Samsung Sees Remarkable Financial Growth in Q4 2024
In the final quarter of 2024, Samsung showcased impressive financial performance with revenues soaring to KRW 75.8 trillion (approximately $52.1 billion), marking a 12% increase compared to the same period in 2023. The operating profits for this quarter reached KRW 6.5 trillion ($4.47 billion), reflecting an astonishing year-on-year surge of 130%.
Annual Revenue Milestone Achieved
The tech giant concluded the fiscal year with a total revenue of $207 billion, significantly up from the previous year’s figure of $178.3 billion. This result positions Samsung as having its second-best annual revenue, trailing only behind its record-setting performance in 2022 when it achieved $244 billion.
Profits Surge, Yet Expectations Not Met
Total profits for Samsung’s entire fiscal year amounted to $22.5 billion—an impressive quintuple increase from only $4.5 billion in 2023. However, despite these favorable numbers, analysts highlighted that Samsung did not meet market forecasts largely due to diminished demand for both AI and personal computing chips.
The company’s high-bandwidth memory (HBM) offerings, especially the HBM3E variants, faced setbacks as they were not certified by Nvidia for use in their AI accelerator units. Additionally, competition within the DRAM and NAND storage markets intensified pressure on sales figures; specifically within their semiconductor sector where revenues totaled $20.68 billion alongside profits of $1.99 billion for Q4 alone.
Mobile Division Performance and Future Prospects
The Mobile eXperience (MX) division saw revenues slip to $17.8 billion during Q4 along with a profit decline to $1.45 billion when juxtaposed against Q4 results from a year earlier; however, there is optimism surrounding sales expectations related to the recently unveiled Galaxy S25 series and anticipated foldable devices.
A Look Ahead: Strategies and Anticipated Changes
As we move into early quarters of next year, Samsung predicts heightened demand particularly in image sensor technology and display panel production driven by new flagship smartphone launches expected by Q1 developments.Meanwhile, outlooks regarding their semiconductor business remain cautious over short-term recovery; nonetheless they are committed towards significant investments in research and development endeavors aimed at sustaining competitiveness moving forward.
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