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2024: 1st place in the smartphone market in the first quarter
2023
Semiconductor business brings Samsung annual losses of $11.2 billion
At the end of 2023, Samsung Electronics received revenue of 258.94 trillion Korean won (approximately $194.48 billion at the exchange rate as of January 31, 2024). This is 14.3% less than the result for the previous year. The decline in sales is due to the difficult geopolitical situation, macroeconomic challenges and a decline in the memory chip segment. This is stated in the financial report released on January 31, 2024.
Net profit Samsung in 2023 collapsed by 72.2% compared to 2022, being at the level of 15.49 trillion won ($11.63 billion). The company's capital expenditures in 2023 reached a total of 53.1 trillion won ($39.88 billion), including 48.4 trillion won spent in the Device Solutions (DS) division and 2.4 trillion won in Samsung Display Corporation (SDC).
It is noted that Samsung's semiconductor business showed annual losses of 14.87 trillion Korean won (about $11.17 billion). For comparison: at the end of 2022, Samsung received a profit of about 23.8 trillion won ($17.8 billion) in the semiconductor product segment. Due to low demand, Samsung's contract chip production, TV and home appliance segments suffered. In 2023, Samsung's memory division focused on increasing sales of high-value-added products such as HBM, DDR5, LPDDR5x and UFS 4.0.
The South Korean company notes that the ongoing (as of early 2024) macroeconomic uncertainty will put pressure on the business environment in the short term. At the same time, Samsung believes that the development of artificial intelligence, the use of which requires the presence of productive chips, should contribute to improving financial performance. In 2024, it is also expected to increase demand in the server market due to the need to update outdated equipment.[1]
Emerging markets share of smartphone shipments - 58%
The chart is based on data from the first quarter of 2018 through the second quarter of 2023.
In the list of companies with the largest R&D costs
For Amazon shows the costs of technology and content (not R&D).
ByteDance statistics date back to 2021 (according to the Wall Street Journal)
2023: Samsung's 150 million phones sold E1100
2022: Memory Chip Market Share Cut
2021
Share of global smartwatch sales - 10.2%
Revenue growth to 279.6 trillion won
At the end of 2021, Samsung Electronics raised 279.6 trillion won (about $232.2 billion at the rate of publication of financial statements - January 28, 2022) against 236.81 billion won a year earlier.
Revenue growth in the quarter was due to results in the production of finished products and an increase in sales of expensive smartphones, as well as TVs and household appliances. However, the main financial driver is related to the semiconductor business. The corresponding unit in 2021 received revenue in the amount of 94.16 trillion won, which is 29% more compared to 2020. Sales of memory chips, in particular, increased by 31%, to 72.6 trillion won.
In the consumer electronics division, revenue increased 16% to reach 55.83 trillion won. In the division specializing in the production of mobile devices, turnover on an annualized basis increased by 10%% to 109.25 trillion won.
However, as noted by Reuters, analysts expected higher profits from the company. Samsung's earnings at market expectations were hampered by limited supplies of memory chips, heavy R&D spending and one-off bonuses at the end of the year. Samsung said chip shipments fell short of their own expectations because the company decided to refrain from actively ramping up sales and focus on profits.
Samsung's net profit at the end of 2021 was 39.91 trillion won, increasing relative to the profit of a year ago at 26.41 trillion won.
According to reports, the company's capital expenditures in 2021 reached a total of 48.2 trillion won, including 43.6 trillion won for the development of the semiconductor business and 2.6 trillion won for the display business. The company's memory production line costs are mainly focused on expanding capacity and migrating processes in factories in Pyeongtaek and Xi'an to meet the demand for products made with advanced technical processes, including 15-nanometer DRAM memory based on EUV (deep ultraviolet lithography) technology and 6th generation V-NAND memory.
The second place in the world in the production of chips for other companies
1st place in the smartphone market in the second quarter
In the second quarter of 2021, Samsung Electronics led the global smartphone market.
In the second quarter Samsung , the share was 19%, Xiaomi - 17%, and - Apple 14%.
Samsung Electronics bypasses Intel in semiconductor revenue
In the second quarter of 2021, Samsung Electronics overtook Intel as the largest chip manufacturer in terms of revenue and is expected to retain this title in the near future.
In April-June, a South Korean technology company received 22.74 trillion won, equivalent to $19.7 billion, as income from semiconductor production.
Intel's total revenue was $19.6 billion - or $18.5 billion after[2] deduction[3].
Intel has held the top spot in sales for much of the past three decades, behind Samsung in 2017 and 2018 as chip sales boomed.
2020
Global Smartwatch Market Share - 8%
Samsung Electronics' share of the global market smartwatch was 8% (data). IDC More. here
Global Washing Machine Market Share - 6.1%
Samsung Electronics accounted for 6.1% of the global washing machine market (Euromonitor International data). Read more here.
CMOS Image Sensor Market Share - 20.1%
Samsung Electronics' market share of CMOS image sensors was 20.1% (Omdia data). Read more here.
Revenue increase by 2.8% to $214.4 billion
Samsung Electronics at the end of 2020 received revenue of 236.81 trillion won (about $214.4 billion), which is 2.8% more than in 2019. The company notes that sales and profits have grown despite the COVID-19 coronavirus pandemic.
The main driver of this rise was the semiconductor business, the volume of which in 2020 increased by 12%, 72.86 trillion won. The turnover in the division for the production of mobile devices rose by 6% - to 96.02 trillion won.
In the consumer electronics market, Samsung's revenue in 2020 was 48.17 trillion won, which is 6% higher than a year ago. Sales from the controlled company Harman increased by 9%, to 9.18 trillion won.
Revenues from the sale of Samsung memory chips at the end of 2020 reached 55.44 trillion won, an increase of 11% on an annualized basis. However, the corporation's profits in this market decreased due to a reduction in ASP (average sales value of a product), unfavorable fluctuations in exchange rates and large costs for the development of new factories. These negative factors were not offset by positive ones, such as the release of new smartphone models and high demand for memory in the consumer electronics segment, Samsung said in a report.
In 2020, the division responsible for the production of displays registered revenue of 30.59 trillion won, which is 2% more than in 2019. In this company, the release of screens on quantum dots helped.
Samsung's net profit in 2020 amounted to 26.4 trillion won ($23.9 billion), an increase of 21.5% compared to a year ago.
The company's shares fell 2.2% following trading on January 28, 2021, when the annual statements were published. Over the past 12 months, their value has increased by 46%.[4]
2019
5% drop in revenue to 230.4 trillion won
In 2019, Samsung's revenue reached 230.4 trillion won ($195.6 billion), which is 5% less than a year earlier. The decline is primarily due to the decline in the memory chip market.
Revenues shrank as memory element prices continued to decline and the display panels market weakened. Offset the decline in annual revenue was helped by increased demand for memory elements for servers and mobile devices, as well as stable sales of flagship smartphone models, Samsung said in a statement.
The corporation added that macroeconomic and geopolitical problems are showing signs of weakening, but Samsung does not rule out a worsening situation.
The semiconductor division ended 2019 with a 25% fall in turnover - to 64.94 trillion won. Revenues from memory sales decreased even more - by 31% to 50.22 trillion won.
At the end of 2019, the IT & Mobile Communications division received revenue of 107.27 trillion won, an increase of 7% compared to 2018. The mobile business itself brought the company 102.33 trillion won of revenue, which is 6% higher than a year ago.
In the consumer electronics division, sales in 2019 increased by 6% and reached 44.76 trillion won. Harman added 10.08 trillion won to Samsung's revenue, 14% higher than the 2018 result.
Samsung's net profit in 2019 roughly halved to 21.74 trillion won ($18.5 billion). Profits in the semiconductor division more than tripled to 14.02 trillion won.
The annual profit of IT & Mobile Communications was equal to 9.27 trillion won against 10.17 trillion won of profit recorded at the end of 2018. The consumer electronics division recorded profit growth from 2.02 trillion won to 2.61 trillion won.
Among the largest companies in the semiconductor industry by revenue
Among the 20 most profitable companies in the world
2018
Record revenue - 243.77 trillion won - thanks to chips
At the end of 2018, Samsung Electronics received record revenue of 243.77 trillion won ($219 billion), which is 2% more than the previous year. The rise was largely due to the semiconductor business.
The chip development and sales unit generated 86.29 trillion won in revenue in 2018, up 16% from a year ago. In the memory segment, revenues jumped 20% to 72.38 trillion won.
Samsung's mobile division registered annual revenue of 100.68 trillion won, which is 6% less than in 2017. The consumer electronics segment also showed a 6 percent decline in sales, which amounted to 42.11 trillion won.
The structure, created on the basis of the purchased manufacturer of audio equipment Harman, increased sales by 25% to 8.84 trillion won.
In 2018, Samsung's net profit reached a record 44.34 trillion won (about $39.6 billion), an increase from 42.19 trillion won a year earlier.
The profit of the semiconductor division amounted to 44.57 trillion won against 35.2 trillion won in 2017. The mobile unit had an equal profit of 10.17 trillion.
Samsung attributes the drop in profits in the mobile business to a decline in sales, which, in turn, is caused by low supply smartphones in the face of a stagnating market, despite the seasonal factor. The manufacturer did not name the number of smartphones sold in 2018.
In 2018, Samsung's capital expenditure came in at 29.4 trillion won as the company expanded the number of memory chips manufactured at the plant south of Seoul and also revamped production facilities to produce more OLED displays instead of liquid crystal screens.
After the publication of the reporting for 2018, Samsung shares fell 0.5%.[5]
Dynamics of Samsung's share in the smartphone market
Mobile phone and smartphone sales leaders from 1992 to 2018 in animation below.
2017: Profit growth doubles to $39.6 billion thanks to chips
In 2017, Samsung's net profit almost doubled to 42.19 trillion won ($39.6 billion at the exchange rate as of January 31, 2018) against 22.73 trillion won a year earlier. This was largely due to the growing demand for chips.
Samsung's revenue in 2017 reached 239.58 trillion won ($225.2 billion) against 201.87 trillion won in 2016.
The semiconductor business showed the largest growth among all areas of companies - by 45% to 74.26 trillion won ($69.8 billion). Revenue in the memory segment jumped 59%, reaching 60.3 trillion won ($56.6 billion). The profit of the chip division increased 2.5 times to a record 35.2 trillion won ($33 billion).
Samsung reported strong demand for chips and announced a forecast that in 2018 the company will be able to increase shipments of NAND flash and DRAM memory chips by 40% and 20%, respectively. In addition, Samsung expects to rise from fourth to second place in the list of the largest contract manufacturers of semiconductor products partly due to the popularity of cryptocurrencies.
Samsung IT & Mobile Communications, which is responsible for the development and sale of mobile devices, completed 2017 with a 6 percent increase in turnover - up to 106.67 trillion won ($100.3 billion). The smartphones company did not name the volume of sales, but noted that sales decreased due to falling demand for inexpensive models, while sales of flagship devices increased. Annual profit in the mobile unit increased by 1 trillion won to 11.83 trillion won ($11.1 billion).
It also follows from the Samsung report that the consumer electronics direction in 2017 registered about the same revenue as a year earlier - about 45.1 trillion won ($42.4 billion). The volume of the display business rose by 28% and amounted to 34.47 trillion won ($32.4 billion). Profits here have doubled thanks in large part to orders from Apple (Samsung supplies OLED screens for the iPhone X).[6]
2016: Revenue growth to $173.2 billion despite Galaxy Note 7 recall
On January 24, 2017, Samsung Electronics released its financial statement. The company's revenues rose despite major losses incurred as a result of the recall of the flagship smartphone Galaxy Note 7. The South Korean giant is helped by high demand for electronics components.
In 2016, Samsung's operating profit amounted to 29.24 trillion won ($25.1 billion) against 26.41 trillion won a year earlier. Net profit increased by almost 20% to 22.73 trillion won ($19.5 billion). Revenue also increased - from 200.65 to 201.87 trillion won ($173.2 billion).
The company recorded a financial rise despite the fact that it was forced to recall all more than 3 million Galaxy Note 7 smartphones sold, which have the risk of spontaneous combustion due to faulty batteries. Samsung warned that the costs of the recall campaign will deduct more than $5 billion from operating profit in the 9-month period, which will end at the end of March 2017.
Losses in Samsung's mobile business offset strong chip and display sales, which account for about 68% of the Asian manufacturer's operating profit. In 2016, the semiconductor division of the corporation recorded revenue of 47.59 trillion won ($40.9 billion), which is 8% more than a year ago. Memory chip sales climbed 10%.
Samsung IT & Mobile Communications, which is responsible for the development and sale of mobile devices, ended 2016 with a 3 percent drop in turnover to 100 trillion won (85.9 billion).
Together with the publication of the financial statements, Samsung announced plans to repurchase shares by 9.3 trillion won ($8 billion) in 2017. The board of directors approved a dividend for 2016 of 27,500 won ($23.6) per share, bringing shareholder returns to 50% of earnings excluding capital expenditures.[7]
2015: Revenue cut to $167.1 billion due to smartphone market woes and falling chip prices
At the end of January 2016 Samsung , Electronics released its financial results for the year. smartphones Profits at the South Korean corporation fell nearly a fifth on market woes and falling chip prices.
At the end of 2015, Samsung's net profit amounted to 19 trillion Korean won ($15.8 billion), a decrease of 18.5% compared to the previous year. Operating profit during this time rose by 5.6% to 26.4 trillion won ($22 billion), but revenue decreased - by 2.7% to 200.6 trillion won ($167.1 billion).
According to Yonhap, citing unnamed market observers, Samsung's weak results are associated with a slowdown in growth in Samsung's semiconductor business, through which the company compensates for losses in the mobile direction. The IT & Mobile Communications division responsible for it in 2015 showed a 7 percent decline in sales - up to 103.6 trillion won ($86.3 billion).
Samsung does not name the implementation of smartphones. Analysts at Strategy Analytics counted 319.7 million devices sold by the company in 2015, which corresponds to 22.2% of the total market volume. In 2014, this share of Samsung was measured at 19.6%.
According to experts, strengthening the position of Chinese vendors is one of the main problems for Samsung in the mobile industry. In addition, the profitability of the Korean vendor is negatively affected by the increase in the number of budget models in the assortment. In 2015, operating profit in Samsung's mobile division fell 30% to 10.1 trillion won ($8.4 billion).
The Samsung report also shows that the corporation's semiconductor business reached 47.6 trillion won ($39.6 billion) in 2015, an increase of 20% on an annualized basis. In the division for the production of displays for various electronics, revenue rose 7% to 27.5 trillion won ($22.9 billion). The structure responsible for Samsung consumer electronics showed a 7 percent decline in sales - up to 46.9 trillion won ($39 billion).[8]
2014:10% drop in revenue to $190 billion
On January 29, 2015, Samsung Electronics published a financial report on the results of its activities in 2014. For the first time in three years, the company's profits have shrunk, which is to blame for the weakening demand for smartphones from the South Korean manufacturer.[9]
In 2014, Samsung's revenue amounted to 206.2 trillion won ($190 billion), which is 9.9% less than a year earlier. Net profit fell 23.2% year-on-year to 23.4 trillion won ($21.6 billion). Operating profit for this period decreased by almost a third, stopping at 25 trillion won ($23 billion).
Due to smartphones, Samsung's profit fell for the first time since 2011
The fall in annual profits was the first since 2011. Then operating profit was measured at 15.6 billion won ($14.4 billion).
The corporation's financial decline is directly related to the decline in sales of its smartphones due to the activity of Chinese and Indian competitors. According to the Strategy Analytics research agency, in 2014 Samsung launched 317.2 million smartphones on the global market against 319.8 million in 2013.
Although Samsung is the leader in terms of annual shipments, Apple has already caught up with it in terms of quarterly shipments, which in October-December 2014 prepared 74.5 million iPhones for sale. Samsung also shipped about the same number of pipes, analysts calculated.
Samsung itself announced the sale of 95 million mobile phones in the fourth quarter of 2014, where smartphones accounted for about 71-76 million devices purchased by consumers around the world.
In the last three months of 2014, the operating profit of Samsung IT & Mobile Communications (responsible for the production and sale of smartphones and tablets) decreased to 1.96 trillion won ($1.8 billion), which is 64% less than a year ago.
Samsung's failures in the mobile business contrast with its success in semiconductor. The corresponding division of the company ended the fourth quarter of 2014 with an operating profit of 3.13 trillion won ($2.9 billion), which jumped 45% on an annualized basis.
Samsung's main driver in the chip market is mobile processors and contract chip manufacturing services - they, according to management, will provide the company with further growth in the industry in 2015.
2011: Company capitalization $137.6 billion
Capitalization as of March 2011 - 153.2 trillion won ($137.6 billion). The results of the first quarter of 2011 - the company's operating profit, according to preliminary estimates, decreased by 34% compared to the same period last year to 2.9 trillion won ($2.7 billion). In the previous year, profit from core activities amounted to 4.41 trillion won. Revenue in the first quarter, according to preliminary calculations, increased by 6.8% year-on-year to 37 trillion won.
2010: Revenue $97 billion, profit - $11 billion
Financial Performance (IFRS 2010): Revenue - $97.12 billion, Net profit - $11.45 billion.
2009: Revenue of $116 billion and 188 thousand employees
Sales in 2009 amounted to $116.8 billion. USA Samsung Electronics employs 188,000 people in 185 offices in 65 countries.
Notes
- ↑ Samsung Electronics Announces Fourth Quarter and FY 2023 Results
- ↑ [https://www.wsj.com/amp/articles/samsung-takes-intels-chip-seller-crown-but-bigger-showdown-looms-11627812000?mod=searchresults_pos2&page=1 the Samsung Electronics
- ↑ overtook Intel]
- ↑ Earnings Release Q4 2020 Samsung Electronics
- ↑ Earnings Release Q4 2018 Samsung Electronics
- ↑ Earnings Release Q4 2017 Samsung Electronics
- ↑ Samsung Electronics Earnings Release Q4 2016
- ↑ Samsung Q4 net tumbles on smartphone, chip woes
- ↑ Samsung Electronics' Q4 net down 27 pct
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