Despite Weak Q4, Samsung Remains Optimistic for 2023

The fourth quarter of 2022 was harsh on smartphone makers, and Samsung wasn't an exception. The Korean giant reported lower revenue and smartphone shipments but remains optimistic about the 2023 outlook.

Revenue from Samsung’s Mobile eXperience (MX) and Networks division dropped 7% from a year earlier to KRW26.9 trillion ($21.8 billion). With weak demand in the low- and mid-tier smartphone segment, shipments fell 19.4% to 58 million units, with the ASP declining 5.1% to $240. Tablet shipments rose 14.3% to 8 million units.

On a group level, net profit more than doubled to KRW23.5 trillion due to a decline in income tax stemming from previously deferred liabilities related to subsidiary dividends. Revenue decreased by 8.2% to KRW70.5 trillion. On an earnings call, EVP of investor relations Ben Suh said the business environment deteriorated significantly in 4Q22, with weak demand during a slowdown triggered by global macroeconomic issues.

Samsung’s mobile unit delivered an optimistic outlook for the current quarter, forecasting smartphone shipments and ASPs to rise, despite a continuing economic slowdown and other factors contributing to instability. Shipments of tablets, however, are expected to decline in Q1 and the company forecasts the smartphone market to contract over the full year, with the mass market impacted the most.