Samsung has reported its earnings for Q4 2024 that ended December 31, 2024 in which the company posted 75.8 trillion won (USD 52.09 billion approx.) consolidated revenue, up 11.79% YoY, but down 4.17% QoQ.
It made an operating profit of 6.5 trillion won (USD 4.46 billion), up 132.14% YoY, but down 29.34% QoQ, largely due to soft market conditions especially for IT products, and an increase in expenditures including R&D.
For the whole of 2024, it posted 300.9 trillion won ($206.82 billion approx.) consolidated revenue, up 16.22% YoY and the second-highest on record, surpassed only in 2022. Operating profile was 32.7 trillion won (USD 22.47 billion), up 395.45% YoY.
Samsung MX (Mobile eXperience) in Q4 2024
The MX and Networks businesses posted 25.8 trillion won in consolidated revenue, up 3.2% YoY, but down 15.4% QoQ. The division posted 6.5 trillion won in operating profit, up 132.14% YoY, but down 29.34% QoQ.
The QoQ decrease in sales and profit, in part due to the fading effects of new flagship model launches. However, on a full-year basis, flagship sales saw robust growth on the back of double-digit growth of the Galaxy S24 series with tablets and wearables also increasing in both value and shipments, said Samsung.
Samsung MX Q1 2025 and 2025 expectations
In the first quarter of 2025, the MX Business plans to drive sales growth based on its flagship models, particularly the newly launched Galaxy S25 series, and will continue to lead the AI smartphone market through promotion of new AI experiences and product competitiveness.
In 2025, the MX Business will reinforce its mobile AI leadership by providing more personalized, differentiated AI experiences while also strengthening the foldable lineup to generate new customer demand.
Additionally, the Business plans to expand sales by providing advanced AI features and rich Galaxy ecosystem experiences for premium tablets, notebooks, wearables and the upcoming XR device. It also plans to improve profitability by efforts such as expanding flagship sales.
Samsung DS (Semiconductors) in Q4 2024
The semiconductor unit reported operating profit of 30.1 trillion won, up 38.7% from the previous year, and up 2.73% from the previous quarter. The Memory Business achieved record-high fourth-quarter revenue, backed by a higher blended DRAM average selling price (ASP) due to the increased sales of high-bandwidth memory (HBM) and high-density DDR5 for servers.
However, operating profit decreased slightly compared to the previous quarter as a result of increased R&D expenses to secure future technology leadership, as well as the initial ramp-up costs to secure production capacity for cutting-edge nodes.
The overall profit for the Foundry Business decreased due to lower utilization rates and higher R&D expenses for advanced-node technology. Its 2nm GAA technology is under active development, with the design-kit (DK) already distributed to customers for product design, while the 4nm process is mass-producing HPC products based on stable yields.
Samsung DS Q1 2025 and 2025 expectations
Looking ahead to the first quarter of 2025, earnings are expected to remain weak due to sluggish mobile demand and fixed-cost burden stemming from lower utilization rates. In this environment, the Foundry Business will concentrate on advancing leading-edge process development and enhancing process maturity to expand opportunities in AI and HPC applications and customer engagement for advanced nodes.
As for 2025, the Business will continue to secure orders from major customers by ramping up and stabilizing the 2nm GAA technology, while simultaneously bolstering the 4nm technology and design infrastructure to meet the growing mobile and HPC needs.