On January 30, Samsung Electronics released the company’s fourth-quarter and annual financial results. According to the financial report, Samsung’s fourth-quarter revenue was 59.88 trillion won ($50.8 bln). It is an increase of 1% year-on-year, while the operating profit was 7.16 trillion won ($6.1 bln), a decrease of 34% year-on-year. Net profit fell 38% to 5.2 trillion won ($4.4 bln).
Throughout 2019, Samsung’s revenue was 230.4 trillion won ($195.6 bln), a year-on-year decrease of 5.5%. And operating profit was 27.77 trillion won ($23.56 bln), a 52.8% decrease. The net profit of Samsung was 21.73 trillion won ($18.5 bln), down 51% year-on-year.
Profits in the fourth quarter fell year-on-year due to a continued decline in storage chip prices and weak demand for display panels. However, improved memory requirements for servers and mobile products, as well as solid sales of flagship smartphones, helped alleviate the decline in overall revenue
What Samsung Electronics Is Going To Do?
Samsung Electronics expects the overall business performance to improve․ The company also believes that the global business environment remains uncertain. Due to the increasing demand from data center companies and the adoption of 5G smartphones, the memory market situation may gradually improve. However, the actual speed of 5G expansion and its impact on DRAM remains to be seen.
Also read: Samsung Invests $8 Billion In Chinese NAND Flash Memory Chips Manufacturers
The foundry business plans to expand production of 5 nm and 7 nm EUV (Extreme Ultraviolet Lithography) processes while working on the development of the next generation of 3 nm GAA (Gate Almighty) technology. In terms of displays, Samsung will prioritize the increasing adoption of OLED and folding screens.
In the consumer electronics sector, the company will seek to increase sales of QLED 8K TVs and launch new high-end appliances Samsung’s Electronics total capital expenditure in 2019 is 26.9 trillion won ($ 22.8 bln). In 2020, Samsung will flexibly execute its capital expenditure plans to meet the changing needs of the market. Afterward, continue to invest in infrastructure and mid- to long-term business opportunities.