January 31, 2024 – In a recent announcement, Samsung Electronics has revealed its financial results for the fourth quarter and the entirety of 2023, painting a bleak picture for the tech giant. The company’s operating profit for the year plummeted by a staggering 84.86%, reaching a historical low of 6.567 trillion Korean won (approximately 35.4 billion Chinese yuan), a level not seen since the 2008 financial crisis.
According to the financial report, Samsung’s combined operating profit for the fourth quarter of 2023 stood at 2.82 trillion Korean won (around 15.172 billion Chinese yuan), marking a significant decrease of 34.4% compared to the same period the previous year. Sales revenue also dipped by 3.81% to 67.78 trillion Korean won (roughly 364.656 billion Chinese yuan).
The annual consolidated operating profit of 6.567 trillion Korean won represents an 84.86% decrease from the previous year, making it the lowest since the company reported 6.03 trillion Korean won during the 2008 financial crisis.
The primary culprit behind Samsung’s profit decline is the substantial losses incurred by its semiconductor division due to industry downturn. Media reports indicate that the company’s semiconductor business unit suffered a loss of 14.88 trillion Korean won last year.
Specifically, in the fourth quarter, Samsung’s chip sales revenue amounted to 21.69 trillion Korean won, exceeding market expectations. However, the division posted an operating loss of 2.18 trillion Korean won (approximately 11.728 billion Chinese yuan), which also surpassed market forecasts of 1.7 trillion Korean won.
