Samsung Electronics posted its lowest quarterly profit in more than a decade as memory chip prices remain under pressure and smartphone sales weakened.
Operating profit plunged to 6.5 trillion won ($4.9 billion) in the fourth quarter, down from 9.2 trillion won in the previous three months. Revenue fell to 75.8 trillion won ($57 billion).
The world’s largest memory chipmaker said chip market conditions will stay soft in the first half of 2025, even as it accelerates production of advanced high-bandwidth memory for AI applications. The company is shifting away from legacy products to focus on cutting-edge nodes and high-value chips like DDR5 and LPDDR5x.
Samsung’s mobile division saw profits decline as the Galaxy S24 series launch effect faded. The company is betting on AI features in its new flagship phones to revive growth, while warning that component costs will rise this year.
Capital spending reached 53.6 trillion won ($40.3 billion) in 2024, with most going to the semiconductor division as Samsung races to catch up with TSMC in advanced chipmaking.
For 2024, Samsung reported full-year revenue of 300.9 trillion won ($226.2 billion), its second-highest ever, though operating profit fell significantly from the previous year.
