Current:Home > MarketsSamsung reports decline in profit but anticipates business improvement driven by chips-Angel Dreamer Wealth Society D1 Reviews & Insights
Samsung reports decline in profit but anticipates business improvement driven by chips
View Date:2024-12-23 14:10:39
SEOUL, South Korea (AP) — Samsung Electronics on Wednesday reported an annual 34% decline in operating profit for the last quarter as sluggish demands for its TVs and other consumer electronics products offset hard-won gains from a slowly recovering computer chip market.
The South Korean technology giant said it expects its business to improve throughout 2024, forecasting larger demands for semiconductors that power artificial intelligence features increasingly used in smartphones, personal computers and other products. However, macroeconomic uncertainties could continue to affect its business in the near-term.
Samsung’s operating profit was measured at 2.8 trillion won ($2.1 billion) for the three months through December, compared to 4.3 trillion ($3.2 billion) from the same period last year. Its operating profit for the full year 2023 was at 6.5 trillion won ($4.8 billion), which marked an 85% decline from 2022 and represented the company’s lowest since 2008, when global markets were weathering a financial crisis.
While the company’s semiconductor division posted a loss of 14.9 trillion won ($11 billion) in 2023, the losses narrowed during the fourth quarter, with the DRAM business returning to profit. The company said in October that it plans to more than double its production capacity of advanced high-bandwidth memory chips in 2024 to respond to demands created by AI.
“In 2024, the memory business expects the market to continue to recover despite various potential obstacles, including interest rate policies and geopolitical issues,” Samsung said in a statement.
The company is also focused on boosting its sales of its latest smartphone, the Galaxy S24, which is built with an array of new features enabled by AI, including live translation during phone calls in 13 languages and 17 dialects.
veryGood! (83)
Related
- Where is 'College GameDay' for Week 12? Location, what to know for ESPN show
- Hal Steinbrenner on Yankees' disappointing year: 'It was awful. We accomplished nothing'
- Killer whales sink yacht after 45-minute attack, Polish tour company says
- Two alligator snorkeling attacks reported the same week in Florida
- Tony Hinchcliffe refuses to apologize after calling Puerto Rico 'garbage' at Trump rally
- Nia DaCosta makes her mark on Marvel history with ‘The Marvels’
- Clerk denies tampering or influencing jury that found Alex Murdaugh guilty of murder
- International Monetary Fund warns Europe against prematurely declaring victory over inflation
- Texas man accused of supporting ISIS charged in federal court
- Alexander Payne on the inspirations of ‘The Holdovers’ and the movies that shaped him
Ranking
- Duke basketball vs Kentucky live updates: Highlights, scores, updates from Champions Classic
- Man killed after pointing gun at Baltimore police, officials say
- Do you have a $2 bill lying around? It could be worth nearly $5,000 depending on these factors
- TikTok is ending its Creator Fund, which paid users for making content
- November 2024 full moon this week is a super moon and the beaver moon
- Wisconsin Assembly to pass Republican bill banning race, diversity factors in financial aid for UW
- FDA moves to pull common drug used by pork industry, citing human cancer risk
- International Monetary Fund warns Europe against prematurely declaring victory over inflation
Recommendation
-
BITFII Introduce
-
Jenna Bush Hager shares photos from Bush family's first dinner together in 'a decade'
-
Peace Corps agrees to pay $750,000 to family of dead volunteer
-
A man with a gun is arrested in a park near the US Capitol
-
Wendi McLendon-Covey talks NBC sitcom 'St. Denis Medical' and hospital humor
-
Chile president calls for referendum on new constitution proposal drafted by conservative councilors
-
Oregon GOP senators who boycotted Legislature file federal lawsuit in new effort to seek reelection
-
A top Chinese military official visits Moscow for talks on expanding ties