Samsung reported a sharp decline in profits for 2022, primarily due to weak demand for chips and smartphones, which are major revenue sources for the company. In its latest earnings report, the Korean tech giant posted an annual revenue of 302.23 trillion won (US$245.4 billion), setting a new record high for the company. However, Samsung also reported an operating profit of 43.38 trillion won (US$35 billion) for the year, down by 8.5 trillion won (US$6.9 billion) from the previous year. Samsung is preparing for this downward trend to continue in the coming months, though it expects demand for its products to rise in the second half of the year.
Similarly, demand for smartphones remained weak in the fourth quarter of 2022. Sales of Samsung’s budget phones decreased, and while flagship sales met market expectations, they were still lower than in previous quarters. The company anticipates further declines in mass-market smartphone demand in 2023 but expects steady demand for premium devices.