Samsung released its financial results for the last quarter of 2022 and the fiscal year, and once again managed to achieve record revenue for a full 12 months – KRW 302.23 trillion (approx. $244 billion). This is an increase of 8% compared to 2021; however, operating profit was KRW 43.38 trillion, 15% less than the previous year.
Q4 was underwhelming for the Korean company as it recorded a decline in sales in virtually all divisions due to weak demand caused by the global economic slowdown.
The Mobile Experience (MX) division saw a 9% year-over-year decline in revenue in the 4th quarter, but for the full year, sales were up 10% year over year. However, profit fell across the board – lower both sequentially and year-on-year for the last quarter and lower for the entire years. Samsung confirms that the mass market declined sharply due to “inflation and geopolitical instability”.
While demand for Galaxy smartphones was unexpectedly weak during the holiday quarter, the flagships still held strong against market forecasts. Samsung expects the downward trend to continue in Q1 2023, but things will eventually turn around after the launch of the Galaxy S23 series. The new flagships, scheduled to arrive tomorrow, will be “equipped with an improved camera and gaming features.”
The coming year will remain tough, predicts Samsung. Mass-market models will take the biggest hit, and the company will try to counter that with competitive deals through carriers, including expansion among early adopters of 5G.
