Samsung had a solid end to 2024, with Q4 revenues reaching KRW 75.8 trillion ($52.1 billion), a 12% year-on-year increase from Q4 2023. Operating profits for the quarter totaled KRW 6.5 trillion ($4.47 billion), marking an impressive 130% jump compared to the same period last year.
For the 2024 financial year, Samsung posted a revenue of $207 billion, a notable increase from $178.3 billion in 2023. This marked the company’s second-highest annual revenue ever, just behind 2022’s record of $244 billion. Profits for the year surged to $22.5 billion, a massive five-fold increase from $4.5 billion in 2023.
Weak Demand in the Semiconductor Sector
Despite these strong figures, Samsung fell short of market expectations largely due to weak demand for its AI and personal computing chips. The high-bandwidth memory (HBM) chips, specifically the HBM3E model, were not certified by Nvidia for use in its AI accelerators, and DRAM and NAND storage chips faced increasing competition from rivals.
The semiconductor business generated $20.68 billion in revenue and $1.99 billion in profit during Q4.
Mobile Division
Samsung’s Mobile Experience (MX) division, which includes smartphones, posted $17.8 billion in revenue and $1.45 billion in profit during Q4. Both figures were down from the same period in 2023, reflecting weaker demand. However, the company remains optimistic about strong sales for its newly launched Galaxy S25 series and upcoming foldable phones.
Looking Ahead
For 2025, Samsung expects increased demand for image sensors and display panels, particularly with the launch of flagship phones in the first quarter. However, the outlook for its semiconductor business remains less promising in the short term. Samsung plans to continue investing in R&D to maintain its competitive edge in this sector, hoping to recover from the current slump.
