Samsung Reports Strong Earnings Despite Weak Chip Demand

Samsung finished 2024 on a strong note, reporting Q4 revenues of KRW 75.8 trillion ($52.1 billion), a 12% increase year-over-year from Q4 2023. Operating profits surged to KRW 6.5 trillion ($4.47 billion), reflecting a remarkable 130% growth compared to the previous year.

Samsung’s Strong Financial Performance in 2024

Samsung reported a revenue of $207 billion for the 2024 financial year, a significant rise from $178.3 billion in 2023. This marks the company’s second-highest annual revenue ever, trailing only 2022’s record of $244 billion. Profits skyrocketed to $22.5 billion, a five-fold increase from $4.5 billion in the previous year.

Challenges in the Semiconductor Sector

Despite these impressive figures, Samsung fell short of market expectations due to weak demand for its AI and personal computing chips. Its high-bandwidth memory (HBM) chips, particularly the HBM3E model, were not certified by Nvidia for use in AI accelerators. Additionally, DRAM and NAND storage chips faced growing competition from industry rivals.

Mobile Division Performance

Samsung’s Mobile Experience (MX) division, which encompasses smartphones, reported Q4 revenue of $17.8 billion and a profit of $1.45 billion. Both figures declined compared to the same period in 2023, reflecting weaker demand. However, the company remains optimistic, anticipating strong sales for its newly launched Galaxy S25 series and upcoming foldable devices.