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‘However, its figures remain significantly lower compared to last year.’
Samsung, the South Korean multinational conglomerate, has reported significant losses in recent quarters. However, the company remains optimistic about its future, according to its latest earnings report. Samsung attributes its improved performance in the past three months to strong sales of its flagship mobile devices and premium displays. Additionally, its Device Solutions division, which includes memory and foundry businesses, has narrowed its losses. Samsung anticipates a gradual recovery in demand for memory chips with the increasing popularity of artificial intelligence.
In the third quarter of 2023, Samsung recorded consolidated revenue of KRW 67.40 trillion ($49.9 billion), representing a 12 percent increase from the previous quarter. It also reported a profit of KRW 2.43 trillion ($1.80 billion), which is a third of what the company earned in the same period of 2022 but still a significant improvement compared to the second quarter.
The mobile and network business of Samsung generated consolidated revenue of KRW 30 trillion ($22.17 billion) and an operating profit of KRW 3.30 trillion ($2.44 billion) in the third quarter. Samsung attributes the higher demand to the global smartphone market’s recovery, especially with the success of its Galaxy S23 series and strong sales of foldables, tablets, and wearables. The company expects smartphone sales to grow further in the next quarter due to the holiday season and predicts a market rebound next year as consumer sentiment stabilizes in anticipation of a global economic recovery.
Samsung’s mobile panel business also performed well in the third quarter, reporting increased earnings due to new flagship model releases by major customers, potentially including Apple’s iPhone 15. The company plans to focus on OLED panels for its mobile display business and aims to establish a supply chain for the augmented and virtual reality market.
However, Samsung’s semiconductor division posted operating losses of KRW 3.75 trillion ($2.77 billion) for the quarter, although it is a slight improvement compared to the previous quarter. Nevertheless, Samsung expects demand for PCs and mobile devices to improve in the next period, particularly with strong server demand from cloud service providers driven by generative AI applications.
In conclusion, while Samsung has faced challenges and recorded losses in recent quarters, the company’s latest earnings report signals a positive outlook for the future. With strong sales in its mobile and network business, improved performance in its Device Solutions division, and potential growth in its mobile panel business, Samsung is positioning itself for recovery in the coming quarters.