Samsung's Q4 net profit rises over 20% despite waning chip demand

Samsung Electronics said connected Friday its fourth-quarter nett income roseate much than 20 per cent from a twelvemonth earlier contempt the waning planetary request for representation chips, beating marketplace expectations.

Its nett income totalled 7.75 trillion won ($5.4 billion) for the October-December period, up 22.2 per cent from 6.34 trillion won a twelvemonth earlier, the institution said successful a regulatory filing.

Operating nett soared 129.9 per cent on-year to 6.49 trillion won, portion income roseate 11.8 per cent to 75.78 trillion won.

The net exceeded marketplace expectations. The mean estimation of nett net by analysts stood astatine 5.69 trillion won, according to a survey by Yonhap Infomax, the fiscal information steadfast of Yonhap News Agency.

However, its operating nett missed the market's estimation by 15.7 per cent owed to sluggish income of accepted representation chips for idiosyncratic computers and IT devices, arsenic good arsenic lower-than-expected show of artificial quality (AI) products, specified arsenic precocious bandwidth representation (HBM).

The company's flagship semiconductor concern earned 2.9 trillion won successful operating nett for the three-month play ended successful December connected 30.1 trillion won successful sales.

Sales of representation chips successful the 4th fourth deed a grounds precocious connected higher dynamic random-access representation (DRAM) prices driven by accrued income of HBM chips and high-density Double Data Rate 5 (DDR5) products.

Still, operating nett fell somewhat from the erstwhile 4th owed to a emergence successful probe and improvement (R&D) expenses and successful archetypal ramp-up costs for installation expansion.

The institution saw its operating nett from the fabless division, oregon System Large Scale Integration (LSI), and foundry dwindle successful the quarter.

The 2 non-memory businesses of Samsung Electronics are expected to station much than 2 trillion won successful operating nonaccomplishment successful the 4th fourth successful crisp opposition to a 5 trillion-won operating nett earned by the representation business.

Samsung Electronics' instrumentality division, covering mobile, TV and location appliances businesses, recorded 40.5 trillion won successful income and 2.3 trillion won successful operating nett for the 4th quarter.

Quarterly operating nett from its mobile concern dropped somewhat from 3 months earlier, led by sluggish income of its flagship smartphones.

Its TV and location appliances sectors experienced a diminution successful quarterly nett amid intensifying contention and rising costs.

In the mobile business, Samsung Electronics expects its recently launched Galaxy S25 bid volition thrust income maturation for the coming quarters and assistance the institution pb the AI smartphone market.
Analysts pointed retired that income of HBM products volition beryllium the cardinal to a further enlargement successful the company's show successful the future.