Samsung’s net profit drops by more than 73 percent

Samsung Electronics posted slightly lower sales in the final quarter of 2023 than in the same quarter of the previous year, but net profit fell by more than 73 percent. The decrease is mainly caused by a difference in income taxes.

In the last quarter of 2023 earned Samsung Electronics converted to 46.8 billion euros, a decrease of less than four percent compared to Q4 of 2022. Gross profit also remained almost the same. Other expenses such as research and development also changed little, but thanks to a significant difference in income taxes, net profit fell from 16.5 billion euros at the end of 2022 to less than 4.4 billion euros in the past quarter.

Looking at the various departments of Samsung Electronics, many individual product groups performed less well than before. For example, the smartphone division recorded five percent less turnover; Recently, according to analysts, Samsung is no longer the market leader in smartphones. Sales from TV, white goods and Harman products also fell.

Samsung was able to largely offset this with increases in revenue from various Foundry services. The entire Device Solutions division achieved eight percent more turnover, with DS’s Memory division achieving the largest turnover increase. The memory chip manufacturer earned 29 percent more from memory than in the same quarter last year. Nevertheless, due to very low memory prices, Samsung Electronics still earned a third less last year than in 2022. The South Korean company speaks of a recovered demand for memory and expects revenues from this product category to stabilize in 2024.