Seoul, South Korea – January 25, 2024
Samsung Electronics Co., Ltd. reported robust fourth-quarter and full-year financial results for 2024, fueled by a rebound in the global semiconductor market and steady demand for premium smartphones. The tech giant posted a fourth-quarter operating profit of 8.2 trillion Korean won (KRW), a 48% year-over-year (YoY) surge, with revenue climbing 12% to 78.9 trillion KRW. For the full fiscal year, revenue reached 298.5 trillion KRW, up 15% from 2023, while annual operating profit jumped 34% to 25.7 trillion KRW.
Financial Highlights and Year-End Performance
The company’s recovery marks a stark turnaround from 2023, when macroeconomic headwinds and inventory corrections in the memory chip sector led to a profit slump. The semiconductor division, Samsung’s largest revenue driver, saw Q4 sales leap 24% YoY to 31.2 trillion KRW, driven by soaring demand for high-performance memory chips used in artificial intelligence (AI) applications. Advanced products like High Bandwidth Memory (HBM3) and DDR5 modules accounted for over 40% of DRAM sales, with Samsung securing key partnerships with NVIDIA and AMD to supply next-gen AI hardware.
The Mobile Experience (MX) division also delivered strong results, with Q4 revenue rising 11% to 28.5 trillion KRW. Sales of flagship Galaxy S24 series smartphones and foldables like the Galaxy Z Flip5 exceeded expectations, buoyed by aggressive marketing during the holiday season. However, the Consumer Electronics (CE) division faced challenges, reporting a 5% revenue decline to 14.8 trillion KRW due to softer demand for TVs and home appliances amid rising inflation in key markets like Europe and North America.
Challenges and Strategic Shifts
While Samsung’s semiconductor and mobile units thrived, executives acknowledged ongoing pressures in the broader economy. “Global uncertainties, including geopolitical tensions and supply chain volatility, require us to remain agile,” said Han Jong-hee, Vice Chairman and CEO of Samsung’s Device Solutions division. The company also flagged increased competition in the foundry sector, where rivals like TSMC continue to dominate advanced node manufacturing.
To address these challenges, Samsung outlined plans to ramp up investments in AI-driven technologies, including a 25% increase in R&D spending for 2025. The firm aims to triple its HBM chip production capacity by next year and accelerate the development of its 2-nanometer (nm) foundry process to capture AI and automotive chip demand.
Market Reaction and Analyst Insights
Investors responded positively to the earnings release, with Samsung’s shares rising 3.5% in morning trading on the Korea Exchange. Analysts praised the semiconductor unit’s performance but urged caution. “Samsung’s memory rebound is impressive, but sustaining growth hinges on executing their foundry roadmap and navigating U.S.-China tech tensions,” said Lee Min-hee, an analyst at BNK Securities.
Outlook for 2025
Looking ahead, Samsung forecasts a 10% increase in consolidated revenue for 2025, targeting 330 trillion KRW, with AI and generative AI-enabled devices as core growth drivers. The MX division plans to deepen its focus on foldables and ecosystem integration, while the CE team aims to revitalize sales through AI-powered home appliances.
“Our commitment to innovation and operational resilience positions us to lead in the era of hyper-connected intelligence,” stated CEO Kyung Kye-hyun during the earnings call. “We are confident in our ability to turn challenges into opportunities.”
As Samsung pivots to capitalize on the AI boom, its ability to balance technological innovation with macroeconomic agility will likely define its trajectory in an increasingly competitive global market.
— Reported by Ashley Wellington, Senior Tech Correspondent
Note: Figures converted at 1 KRW = 0.00075 USD for reference.
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