Samsung Unveils Q4 and Full Year 2024 Financial Results

Samsung Electronics Reports Strong Annual Revenue Despite Quarterly Decline

Samsung Electronics has shared its financial performance for the fourth quarter and the entire fiscal year of 2024. The company achieved a consolidated revenue of KRW 75.8 trillion and an operating profit of KRW 6.5 trillion in the last quarter of 2024. Over the full year, Samsung’s revenue reached KRW 300.9 trillion, with an operating profit of KRW 32.7 trillion. Although the figures for the fourth quarter showed a decline compared to the previous quarter, the annual revenue marked Samsung’s second-highest in history, only trailing behind the record set in 2022.

The quarterly drop in operating profit, down by KRW 2.7 trillion, can be attributed to challenging market conditions, particularly in the IT sector, and increased expenditures on research and development. Looking ahead to the first quarter of 2025, Samsung plans to counteract these challenges with a strategy that emphasizes growth through enhanced smartphone sales featuring advanced AI capabilities and premium offerings from the Device eXperience (DX) Division.

For the entirety of 2025, Samsung aims to solidify its technological and product advantages in artificial intelligence, align with future demand for high-value products, and propel sales growth within premium market segments. Despite the expected soft market conditions in the first half of the year for the Device Solutions (DS) Division, Samsung is committed to securing long-term growth by maintaining its technological leadership. The Samsung Display Corporation (SDC) will continue to focus on high-end product competitiveness, while the DX Division aims to expand its leadership in AI-driven experiences across a wide array of products.

In 2024, Samsung’s capital expenditures totaled KRW 53.6 trillion, with the DS Division accounting for KRW 46.3 trillion and SDC for KRW 4.8 trillion. In the fourth quarter alone, the company spent KRW 17.8 trillion, with the majority allocated to the DS Division.

Semiconductors Division: Focus on Advanced Nodes

In the fourth quarter of 2024, Samsung’s DS Division reported KRW 30.1 trillion in revenue and KRW 2.9 trillion in operating profit. The Memory Business achieved record-high fourth-quarter revenue, driven by increased sales of high-bandwidth memory (HBM) and high-density DDR5 for servers. However, operating profit slightly declined due to rising R&D costs aimed at future technology leadership and initial ramp-up expenses for cutting-edge production nodes.

Heading into the first quarter of 2025, the Memory Business plans to pivot its portfolio towards high-value products by accelerating the adoption of advanced nodes, thus catering to the demand for high-performance and high-density offerings. For DRAM, Samsung is increasing the shares of DDR5 and LPPDR5x by transitioning to the 1b nanometer process. In NAND, the company is moving from V6 to V8 technology while boosting sales of V7 QLC-based server SSDs.

The memory market is expected to recover from the second quarter of 2025, and Samsung plans to reduce its focus on legacy products, instead emphasizing advanced nodes. The company will continue optimizing its portfolio by increasing the share of high-value products such as HBM, DDR5, LPDDR5x, GDDR7, and server SSDs.

In the System LSI Business, earnings fell due to weak mobile demand and heightened R&D costs for cutting-edge product development. Despite ongoing challenges, Samsung expects demand for core products like image sensors and DDI to rise with the launch of flagship smartphones.

The Foundry Business experienced a decline in profit due to lower utilization rates and increased R&D expenses for advanced-node technology. The company is actively developing 2nm GAA technology, with design kits already distributed to customers, while the 4nm process is being used for mass production of HPC products.

In the first quarter of 2025, the Foundry Business anticipates continued weak earnings due to sluggish mobile demand and fixed-cost burdens from low utilization rates. However, Samsung is committed to advancing process development and maturity, particularly for AI and HPC applications, to secure customer engagement for advanced nodes.

Looking forward, the Foundry Business plans to bolster 2nm GAA technology and enhance 4nm capabilities to meet growing demands in mobile and HPC sectors.

Display Division: Strengthening Product Competitiveness

Samsung Display Corporation (SDC) reported KRW 8.1 trillion in revenue and KRW 0.9 trillion in operating profit for the fourth quarter. The mobile display segment faced declining profits due to reduced smartphone demand and increased competition, while the large display segment experienced double-digit revenue growth, thanks to higher year-end TV sales.

In the first quarter of 2025, SDC anticipates a cautious outlook for mobile displays, with overall smartphone demand expected to remain subdued. However, the large display segment is set to benefit from the introduction of TVs with enhanced image quality and high-resolution monitors.

Throughout 2025, SDC aims to maintain its leadership in the high-end market by strengthening product competitiveness, particularly in the large display sector, by increasing sales of high-performance TVs and monitors.

Mobile Experience Division: Expanding AI and Premium Offerings

The Mobile eXperience (MX) and Networks businesses reported KRW 25.8 trillion in revenue and KRW 2.1 trillion in operating profit for the fourth quarter. The MX Business experienced a decrease in sales and profit, partly due to diminishing effects from new flagship model launches. However, on an annual basis, flagship sales, particularly the Galaxy S24 series featuring Galaxy AI, saw significant growth, along with an increase in tablets and wearables.

In the first quarter of 2025, the MX Business plans to drive sales growth through its flagship models, especially the newly launched Galaxy S25 series. The focus will remain on leading the AI smartphone market by promoting new AI experiences and product competitiveness.

For 2025, the MX Business aims to bolster its leadership in mobile AI by offering more personalized and differentiated experiences while expanding the foldable lineup to stimulate new customer demand. The business also intends to boost sales by offering advanced AI features and comprehensive Galaxy ecosystem experiences for premium tablets, notebooks, wearables, and the upcoming XR device.

Despite anticipated increases in component prices due to advancements in hardware specifications, the MX Business aims to improve profitability by expanding sales of flagship products and developing Galaxy AI.

The Networks Business reported significant improvements in revenue and profit in key markets during the fourth quarter. In 2025, performance is expected to improve further as the business anticipates winning new orders and as major operators expand their networks and adopt virtualized and open radio access networks (vRAN/ORAN).

Visual Display Division: Vision AI Strategy for Growth

The Visual Display (VD) and Digital Appliances (DA) Businesses reported KRW 14.4 trillion in revenue and KRW 0.2 trillion in operating profit in the fourth quarter. The VD Business saw a revenue increase due to expanded sales and an improved sales mix during peak-season promotions. However, profitability slightly declined due to intensified competition amid stagnant TV demand.

In the first quarter of 2025, overall TV demand is expected to decrease year-on-year due to economic uncertainties, yet demand for high-value products is projected to remain strong. The business plans to enhance profitability and expand strategic product sales through the launch of new models based on Samsung’s Vision AI strategy for AI-integrated screens.

In 2025, the TV market is expected to grow slightly in key emerging markets. The VD Business plans to lead the AI screen market under Samsung’s “Home AI” vision, integrating AI into all connected device experiences through the SmartThings platform and expanding the use of Samsung Knox security solutions.

Samsung Electronics continues to navigate a challenging market landscape, leveraging its diversified business portfolio and technological advancements to foster a new phase of growth and maintain its leadership across various segments.

For more Information, Refer to this article.