Samsung Electronics Reports 11.3 Trillion KRW Operating Profit in Mobile Experience Business Last Year, Down 2.27% YoY

Samsung Electronics reported a consolidated operating profit of 4.3 trillion KRW for the fourth quarter of last year, a 69% decrease compared to the same period the previous year. On the 6th, Samsung Electronics Seocho Building in Seocho-gu, Seoul. Photo by Jinhyung Kang aymsdream@

[Asia Economy Reporter Kang Nahum] Samsung Electronics announced on the 31st that its Mobile Experience (MX) and Network divisions recorded consolidated sales of 120.81 trillion KRW and operating profit of 11.38 trillion KRW last year. Sales increased by 11% compared to the previous year, while operating profit decreased by 2.27%.

Looking at the fourth-quarter performance of the MX and Network divisions alone, sales were 26.9 trillion KRW and operating profit was 1.7 trillion KRW. Compared to the same period last year, sales decreased by 7% and operating profit by 36%.

It appears that both sales and profits declined due to a slowdown in smartphone sales and weak demand in the mid-to-low-end market. Samsung Electronics explained the fourth-quarter MX division results by stating, "The market, inflation, and instability in international affairs continued, leading to sluggish smartphone demand. Sales and operating profit decreased due to reduced effects from new model launches and weak demand caused by the economic downturn."

They added, "Although the impact of the decline in mid-to-low-end smartphone sales was greater than expected, flagship products performed relatively well compared to the market outlook decline."

Samsung Electronics expects that smartphone demand will continue to be sluggish in the first quarter of this year due to the ongoing global economic downturn. Accordingly, they plan to expand sales of flagship products such as the Galaxy S23 and continue strengthening sales of premium tablets and wearable products.

As competition in the smartphone market intensifies, efforts to secure profitability through resource operation efficiency will also continue.

Additionally, the Network division plans to focus on responding to new business opportunities while strengthening its overseas business base, including in North America and domestically.