Samsung released its financial results for the fourth quarter of 2022 and the fiscal year and once again managed to achieve record revenue for the entire 12 months: KRW 302.23 trillion (about $244 billion). This is an 8% increase over 2021; however, operating profit was KRW 43.38 trillion, which is 15% less than a year earlier.
The fourth quarter was disappointing for the Korean company, which reported declining sales across virtually all divisions due to weak demand caused by the slowdown in the global economy.
The Mobile Experience (MX) division reported a 9% year-over-year decline in revenue in the fourth quarter, but had 10% higher year-over-year sales for the full year. However, profits were down across the board, lower both sequentially and year-over-year for the latest quarter and lower for full years. Samsung confirms that the mass market has contracted strongly due to “inflation and geopolitical instability”.
While demand for Galaxy smartphones was unexpectedly weak in the holiday quarter, flagships remained strong relative to market projections. Samsung expects the downward trend to continue in Q1 2023, but that will ultimately change after the launch of the Galaxy S23 series. The new flagships, arriving tomorrow, will be “equipped with an improved camera and gaming functionality”.
Next year will remain tough, Samsung predicted. Mass-market models will suffer the most, and the company will look to counter that with competitive deals across carriers, including expansion among first-time 5G users.
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