Samsung Electronics (KS:005930)' Q3 2023 performance marked the highest quarterly profit for the year, although it was the lowest in the past 14 years. The company reported a revenue of KRW 67.4 trillion ($49.86 billion) and an operating profit of KRW 2.43 trillion ($1.79 billion). The figures were driven by robust sales of OLED display panels and high-end smartphones, including the Galaxy Z Flip 5, Galaxy Z Fold 5, and Galaxy S23.
However, compared to Q3 2022, both revenue and operating profit saw a decrease of 12% and 77% respectively. This downturn was attributed to weak demand for semiconductor chips, home appliances, and TVs. Samsung's Device Solutions Business posted its first-ever loss in the semiconductor division's history at KRW 3.75 trillion ($2.77 billion).
In contrast, Samsung MX and Samsung Networks generated an operating profit of KRW 3.3 trillion ($2.44 billion), while Samsung Display profited KRW 1.94 trillion ($1.43 billion) from selling OLED panels for the iPhone 15 series.
Despite the semiconductor division's losses narrowing to KRW 3.8 trillion sequentially due to enhanced sales of high-value-added products and higher average selling prices, investor sentiment remained cool, causing a -0.6% fall in share price.
Looking ahead to Q1 2024, Samsung plans to launch the Galaxy S24 and its first mixed-reality headset, both powered by high-performance processors - Exynos 2400 and Snapdragon 8 Gen 3 respectively. Samsung is also set to release its first laptop powered by the Snapdragon X Elite chip soon.
The company's foundry business, Samsung Foundry, has been acquiring more clients which promises increased future revenue. Despite current macroeconomic headwinds in the semiconductor sector, Samsung anticipates better times ahead with increasing DRAM and NAND flash chip prices and a projected recovery in 2024. The company also plans to ramp up sales of its High Bandwidth (NASDAQ:BAND) Memory (HBM) line.
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