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Samsung Reports Profit Decline in Q4 2024, Expects Galaxy S25 to Boost Sales

by | Jan 31, 2025 | News

After sharing estimated figures earlier this month, Samsung today published its detailed earnings report for the fourth quarter and full fiscal year 2024. The company posted KRW 75.8 trillion (approx. $52 billion) in consolidated revenue and KRW 6.5 trillion (approx. $4.5 billion) in operating profit for Q4. The annual revenue reached KRW 300.9 trillion ($206.7 billion) with KRW 32.7 trillion ($22.5 billion) in operating profit.

Samsung registered a quarterly decline in operating profit in Q4 2024

Samsung’s annual sales revenue in 2024 was the second-highest in its history, following 2022. However, its profits weren’t at the same level last year. The company attributed this decline to soft market conditions in IT products and increased expenditures, including R&D. It expects limited earnings growth in Q1 2025 due to semiconductor weaknesses but aims to boost sales through AI-enhanced smartphones.

That’s an indirect reference to the newly launched Galaxy S25 series. The latest flagships are currently available for pre-order globally. They bring a host of AI enhancements alongside new tools aimed at making your daily mobile experiences smarter and more intuitive. Samsung aims to reinforce mobile AI leadership, enhance its foldable lineup, and integrate AI into premium tablets, notebooks, wearables, and the upcoming XR device.

That said, smartphones have never been Samsung’s primary source of income. It needs to get its semiconductor business back on track to improve its earnings/ The Device Solutions (DS) division that houses the chip business recorded KRW 30.1 trillion in revenue and KRW 2.9 trillion in operating profit for Q4. The memory unit achieved record-high Q4 revenue, driven by strong sales of high-bandwidth memory (HBM) and high-density DDR5 for servers.

However, operating profit fell slightly due to increased R&D costs and ramp-up expenses for advanced nodes. Samsung now plans to shift towards high-value-added products by accelerating the adoption of cutting-edge nodes. It is increasing DDR5 and LPDDR5X shipments and advancing NAND technology. Market recovery is expected from Q2 2025, with a focus on high-performance products like HBM, DDR5, and server SSDs.

System LSI and foundry units also faced challenges in Q4 due to weak mobile demand and higher R&D costs. In 2025, System LSI will optimize flagship SoC products and enhance image sensors for high-resolution needs. The foundry business will focus on stabilizing 2nm GAA technology while expanding 4nm capabilities for AI and high-performance computing (HPC) applications.

Display business also suffered a profit decline

Samsung’s display division reported KRW 8.1 trillion in revenue and KRW 0.9 trillion in operating profit for Q4 2024. While mobile display profits declined due to weak smartphone demand and competition, large displays experienced double-digit revenue growth, supported by year-end TV sales. The firm aims to maintain leadership in high-end displays by strengthening product competitiveness and expanding premium TV and monitor sales this year.

The Visual Display (VD) and Digital Appliances (DA) businesses reported KRW 14.4 trillion in revenue and KRW 0.2 trillion in operating profit for Q4. While revenue increased due to strong peak-season sales, profitability declined due to higher costs amid intense competition. In Q1 2025, TV demand is expected to decline, but high-value-added products should maintain stability. Samsung plans to expand AI-powered TVs under its “Home AI” vision.

Capital Expenditures and Future Strategy

Samsung’s 2024 capital expenditures totaled KRW 53.6 trillion, with KRW 46.3 trillion allocated to the DS Division and KRW 4.8 trillion to SDC. The company will focus on AI advancements, premium product growth, and long-term semiconductor leadership in 2025. Despite market challenges, Samsung remains committed to innovation, technology leadership, and driving growth across key business segments.

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