Samsung Electronics On Friday, the business make the most of the past three months reported strongly when he increased the expenditure of F&E while marking a slowdown by his chip business.
The South Korean company achieved higher sales within the fourth quarter, although the operating profit took over expectations.
Here the outcomes of Samsung are within the fourth quarter in comparison with LSEG Smartestimates, which is weighted on forecasts of analysts which can be consistent:
- revenue: 75.8 trillion Koreans (52.2 billion US dollars) against KRW 75.4 trillion
- Profit: KRW 6.5 trillions in comparison with Krw 6.8 trillion
Sales rose by around 12% in comparison with the previous 12 months, while the operating profit rose by 130% a 12 months. However, operating profit fell by almost 30%and sales rose by over 4%, quarter in 1 / 4, which increased the soft market conditions and a rise in corporate expenses.
Sales with the fourth quarter of beatsamsing beats of 75 trillion Krw, while the corporate profit corresponded to the corporate's forecast.
Samsung is a number one manufacturer of memory chips which can be utilized in devices resembling laptops and servers, and can also be the second largest player on the earth within the smartphone market.
“Although the sales and the profit profit traved in one quarter compared to the quarter (QOQ) in the fourth quarter, the annual turnover reached the second highest time that was only exceeded in 2022,” said Samsung in his statement.
For the entire 12 months, Samsung reported sales of 300.9 trillion KK and 32.7 trillion KRW in operating profit. In 2023, the corporate achieved an annual turnover of 258.94 trillion KRW and an operating profit of 6.57 trillion KRW.
In the present quarter, Samsung said that the result might be limited attributable to the weakness in its semiconductor business, but that it might pursue growth by AI smartphones and other premium devices.
“For 2025 as a whole, the company plans to improve the technological and product advantages in the AI, to continue to meet the future demand for products with high value and to promote sales growth in premium segments,” added.
The Samsung shares fell 2.2% in South Korea on Friday morning, while the SK Hynix share fell over 11% when the South Korean markets showed retail after a four-day break. The Asian tech majors were under pressure from the most recent model for artificial intelligence from China's Deepseek, which uses the AI ecosystem led by the USA.
Storage business
The Samsung Electronics chip business achieved an operating profit of two.9 trillion KrW within the fourth quarter, which was over 25% over the three months in October, while his annual figures were under that of SK Hynix.
Despite the memory business of Samsung, this achieved a record height of 30.1 trillions within the fourth quarter, which were helped with the demand for its advanced memory products for AI applications.
“[O]The Perating win was slightly compared to the previous quarter due to increased F&E expenditure to secure the future technology management, as well as the initial adjustment costs to secure the production capacity for state-of-the-art nodes, ”said Samsung.
Samsung and SK Hynix offer both dram and dynamic random access memory and a type of semiconductor storage required for data processing.
SK Hynix, however, left Samsung back in HBM or a high bandwidth memory, a kind of dram in which chips are stacked vertically to save space and reduce electricity consumption. In HBM products, a booming demand was seen based on use in high-performance computing applications such as AI.
“You lost the proportion of the high bandwidth -dram business … SK Hynix really skipped there before Samsung,” said Eric Ross, Analyst at Cascend Securities, to CNBCS “Squawk Box Asia” on Friday.
He noticed that the US dram manufacturer Micron also gained ground in the company.
“Samsung is currently within the flawed parts of the dram market because they’ve missed the high bandwidth piece and really must catch up,” he said, adding that the PC and smartphone drama markets are under price pressure.
According to Samsung, his memory business lowers the legacy products in order to better align market demand and increase its share of products with high value, such as: B. Hbm.
“In 2025, the demand of the complete storage market is predicted to be recovered from the second quarter,” said Samsung and warned that his profit will remain weak in the current quarter.
Smartphones concentrate
The mobile experiences of Samsung and networks, which were commissioned to develop and sell smartphones, tablets, wearables and other devices, recorded a decline in sales and profit over the quarter in the quarter.
Samsung said that the performance was partially due to the fading effects of the new flagship model.
The segment recorded a consolidated turnover of 25.8 trillion KRW in the fourth quarter and an operating profit of 2.1 trillion KRW.
“However, the flagship sales on the back of the double-digit growth of the Galaxy S24 series with Galaxy Ai, with tablets and wearables, increases each value and programs,” said Samsung.
In the current quarter, Samsung is planning sales growth with new flagship models, in particular the newly introduced Galaxy S25 series and will continue to penetrate the AI smartphone market.
“What Samsung is doing and has done rather well lately, it is absolutely more vital and its flagship devices,” said Nabila Popal, Senior Director at IDCS Data & Analytics Team, to CNBCS “Squawk Box Asia” on on on Friday.
In view of this focus, the proportion of Samsung on the Premium market is gained closer to that of Apple, the leading provider of the Premium Smartphone segment, she added.
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