A photo illustration indicating that the Samsung Group Company logo is displayed on the smartphone screen.
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Samsung Electronics On Friday, the operating profit has been reported that it has dropped sharply from the past three months due to an increase in R & D expenditures and flagging the deceleration of the chips business.
The Korean company has earned a better four -quarter revenue than expected, but has missed its expectations.
The results of Samsung’s fourth quarter are more consistently and more accurate for predictions from lseg Smartestime.
Revenue: 75.8 trillion Koreans win ($ 52.2 billion) vs. KRW 75.4 trillion profits: KRW 6.5 trillion KRW 6.8 trillion
Profit has increased by about 12 % since last year, but operating income increased by about 130 % year -on -year. However, operating income decreased by nearly 30 %, and the profit slips in quarterly, in quarterly, in a quarter, in a quarter, with the increase in software market and increased company expenditures.
The fourth quarter revenue broke Samsung’s own KRW 75 trillion guidance, but the operating profit was consistent with the company’s prediction.
Samsung is a major memory chip manufacturer used for devices such as laptops and servers, and is the second largest player in the smartphone market.
“The fourth quarter revenue and operating income have decreased on a quarter (QOQ), but the annual revenue reached the top in 2022,” said Samsung.
For one year, Samsung reported KRW 300.9 trillion revenue and 32.7 trillion KRW operating profit. In 2023, the company recorded annual revenue of KRW 258.94 trillion and 6.57 trillion KRW.
Samsung stated that in the current quarter, the revenue could be restricted due to the weakness of the semiconductor business, but pursued growth through AI smartphones and other premium devices.
“In the whole 2025, the company plans to strengthen the technical and products of AI, continue to satisfy future demand for highly valuable products, and promote the growth of premium segments.” Ta.
Samsung’s shares decreased by 2.2 % in South Korea on Friday morning, but SK Hinix shares exceeded 11 % because the Korean market resumed transactions after a four -day break. The Asian technical major faces the pressure from the latest artificial intelligence models from DeepSeek in China, which may overturn the US -led AI ecosystem.
Memory business
The Samsung Electronics chip business recorded KRW 2.9 trillion operating profit in the fourth quarter, exceeding 25 % from three months ending in October, and the number of years was lower than Sk Hynix.
This was, despite the fact that Samsung’s memory business has achieved a record for the fourth quarter of the 30.1 trillion, 30.1 trillion, which is useful for the demand for advanced memory products used in AI applications.
“(O) The benefits of the past are compared to the previous quarter, as a result of the increase in R & D costs to ensure future technology leadership and the first lamp -up cost to ensure cutting -edge node production capacity. Samsung said, “said Samsung.
Both Samsung and Sk Hynix provide DRAM, or dynamic random access memory and products. This is a type of semiconductor memory required for data processing.
However, SK Hynix has left Samsung in HBM or DRAM type HIGH bandwidth memory. In this drum, tips are piled up vertically to save space and reduce power consumption. Since HBM products are used in high -performance computing applications such as AI, we have seen the booming demand.
“They lost their share in the high -band DRAM business … it was the place where SK Hynix really jumped out before Samsung,” said CASCEND SECURITIES’s analyst, Eric Ross, “Squawk Box ASIA on Friday. “Was told.
He noted that the US drum maker microns have also gained the company.
“Samsung missed the high bandwidth part, so it is like being in the wrong part of the DRAM market, and it is really necessary to keep up with it,” he said, and the DRAM market on the PC and smartphone was priced. I added it that it was exposed.
According to Samsung, the memory business is more compatible with market demand, reducing legacy products to increase the proportion of high -value -added products such as HBM.
“In 2025, the demand for the entire memory market is expected to recover from the second quarter,” warns Samsung warns that the current quarterly revenue is expected to be weak.
Smartphone focus
Samsung’s mobile experience and network companies have been in charge of the development and sales of smartphones, tablets, wearable, and other devices, and reported on a quarter of sales and profits.
Samsung stated that this performance was part of the new flagship smartphone model to decline.
In this segment, the KRW 25.8 trillion revenue and KRW 2.1 trillion operating profit were found in the fourth quarter.
“However, on the annual basis, the flagship sales have grown steadily with the two digits of the Galaxy S24 series featuring the Galaxy AI. Tablets and wearables are also increasing in both value and shipping.”
In the current quarter, Samsung plans to promote sales growth in the new flagship model, especially the newly released Galaxy S25 series, and will continue to enter the AI smartphone market.
“What Samsung is doing, and what has been really good in the last few years is that it really focuses on value and its flagship device,” said Nabila, a senior director of the IDC Data & Analytics team. Popal told CNBC’s “SQUAWK BOX ASIA”. Friday.
Given the focus, she added that the premium market Samsung share is approaching Apple, the leader of the premium smartphone segment.
