Smartphone and other tech companies have slowly started to recover from stalling sales, but not everyone is out of the woods right now. Samsung has just published its final earnings for the fourth quarter of 2023, and while there is an improvement in the condition, the company has not made a full recovery in terms of its profits. This state indicates that the company will have to work harder if it is looking forward to improving its current condition.
Samsung could make a financial comeback but after a couple of years
The South Korean tech giant posted KRW 67.78 trillion ($50.78 billion) in revenue, along with KRW 2.82 trillion ($2.11 billion). as its operating profit. When compared to last year, the annual revenue was KRW 258.94 trillion ($194.01 billion), while its operating profit was just KRW 6.57 trillion ($4.92 billion). Things might not look good reading this, but the company has talked about how its revenue and profit have increased in the fourth quarter when you compare it with the third quarter. However, things are still not as good as they were before COVID-19, which goes to show that there is still a steep hill to climb if the company wants to make a full recovery.
One of the reasons why Samsung saw an improvement is primarily due to the increase in semiconductor memory chip prices. Not only that, the company is also doing really well when it comes to its premium displays. The tech giant is hoping that the first quarter of this year is also going to perform better, all thanks to the recently released Galaxy S24 series as well as every other product that the company will be releasing going forward, including new devices in the Galaxy A lineup. In addition to that, the introduction of the Galaxy AI and its implementation in multiple devices is another good thing that we can look forward to. Needless to say, Samsung has multiple aces up its sleeves.
Despite seeing improvements, Samsung is still being realistic about the entire situation and has talked about how there are still going to be some economic uncertainties even in the new year. This is mainly due to the fact that the global economy is still suffering, and we have started seeing mass layoffs happening across various companies spanning several industries.
Whatever the case might be, the good news is that Samsung still has some high-profile product releases that will be spanning multiple categories. All of this combined should help the company recover financially and continue to innovate its products for the future.
Seeing companies going through financial crunches is nothing new, especially when you look at the fact that this wave started all the way back in COVID, and we are still experiencing it in the tech world, as well as other industries. It is good to see Samsung making a comeback, but realistically, it could take a few more years before things get better.
News Source: Samsung Newsroom