Samsung Eyes Recovery in 2024 After Disappointing Results, Betting on AI and Premium Tech. Samsung Electronics encountered a challenging end to 2023, witnessing a 34.57% drop in operating profit in the fourth quarter compared to the same period the previous year, aligning with predictions. The company’s revenue reached 67.78 trillion Korean won, falling short of market expectations.
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The downturn in Samsung’s financial performance comes amidst a broader slump in the semiconductor industry, which saw an unprecedented loss of 14.88 trillion won in 2023, attributed to diminished global demand. As a leading producer of memory chips, Samsung is strategizing a turnaround by prioritizing high value-added products and catering to the burgeoning demands for advanced technologies and artificial intelligence. Despite the downturn, the company anticipates a slight profit recovery in the first half of 2024, with expectations for more substantial growth in the latter half.
In the smartphone sector, Samsung experienced a dip in sales in the fourth quarter of 2023, even as it witnessed a $100 increase in the average price of its smartphones, signaling a heightened consumer interest in premium devices. Apple surpassed Samsung to become the leading smartphone manufacturer globally in 2023 by targeting the premium market segment. Looking ahead, Samsung predicts a temporary decline in smartphone demand in early 2024, attributed to seasonal trends, yet remains optimistic about the growth potential in the premium category. The introduction of the new Galaxy S24 series, featuring AI enhancements, is central to Samsung’s strategy to boost sales and reaffirm its dominance in the high-end smartphone market.
The memory chip market is poised for a revival in 2024 following a period of inflationary pressures and inventory surpluses accrued during the pandemic. Samsung anticipates increased demand for chips used in artificial intelligence applications and aims to fortify its leadership in premium product offerings and cutting-edge semiconductor manufacturing.
These projections underscore Samsung’s resolve to navigate through the current challenges in the smartphone and semiconductor markets. The company is poised for a progressive recovery in earnings throughout 2024, leveraging the escalating demand for advanced technology solutions, particularly in the realm of artificial intelligence.
