onaireye

Samsung Expects 2024 Tech Demand Revival After Chip Loss

Samsung Expects 2024 Tech Demand Revival After Chip Loss

SEOUL: Despite rising memory prices, Samsung Electronics (005930. KS) reported a 34% decline in fourth-quarter profit, raising concerns about a sustained weak recovery in memory chips and tech demand in 2024.

Explore Samsung Expects 2024 Tech Demand Revival After Chip Loss. Dive into the details of their projections in our blog post.

The largest memory chip manufacturer in the world stated that it anticipates PC and mobile device manufacturers will incorporate even better chips as artificial intelligence becomes more widely used and the need to replace old servers steadily decreases. That will support the recovery of demand.

“In 2024, the memory business expects the market to continue to recover despite various potential obstacles, including interest rate policies and geopolitical issues,” Samsung stated in a press release.

Samsung reported that from October to December, operating profit decreased to 2.8 trillion won ($2.11 billion) from 4.3 trillion won in the previous year.

For the full year, its chip business fell to a record loss of 14.9 trillion won in 2023, down from a profit of 23.8 trillion won the previous year, a rare collapse caused by slow demand for chips in gadgets. Reasonable influence.

However, as Chinese PC and mobile makers began replenishing semiconductors and memory chip prices recovered,

Samsung’s fourth-quarter losses shrank to 2.18 trillion won, which was smaller than any other quarterly loss in the 2023 business that has historically been its cash leak.

Crosstown rival SK Hynix also stated last week that chip costs will rise this year as customers refill and manufacturers reduce legacy chip output.

According to Samsung, this year’s memory business will be concentrated on cutting-edge chips, such as high-bandwidth memory (HBM) and server solutions needed for generative AI.

In an attempt to overtake SK Hynix in the production of memory chips utilized in generative artificial intelligence,

Samsung maintained a portion of their 2023 capital expenditure from the previous year to boost the chips’ manufacturing capacity, while SK Hynix and Micron (MU.O) Opens a New Tab reduced their investment.

Samsung has unveiled its HBM3 and future ambitions, while SK Hynix was the first to build the most recent version, known as HBM3. Nvidia (NVDA.O), the leader in AI chips, has launched a new tab as a client.

According to the expert, HBM3E is attempting to boost product output.

Market observers will be keeping a close eye on Samsung given reports that it is prepared to begin producing those advanced semiconductors in the first half of this year, according to analyst Ko Yongman of Doyle Investments & Securities.

What a significant presence this year can provide.”

SMARTPHONE REBOUND

Due to the popularity of high-end smartphones, the debut of new products, and increased sales of tablets during the busiest holiday season,

the mobile devices business reported an operating profit of 2.73 trillion won in the fourth quarter, compared to 1.7 trillion won in the previous year. It was popular to wear wearables.

After Samsung has been the world’s top smartphone seller for 12 years, Apple (AAPL.O) opens a new tab in 2023 and takes away 20 percent of the market share, according to a report.

Since the market for high-end phones outgrew that of lower-end handsets from the International Data Corporation.

But to compete with Apple, Samsung intends to increase yearly shipments of flagship smartphones by double digits this year with its most recent high-end models sporting artificial intelligence features.

As competitors like Google, Honour, Oppo, and Motorola from China open up new tabs and expand their foldable phone lineup, it also intends to solidify its dominance in the market.

Samsung’s TV, home appliance, and semiconductor contract manufacturing divisions were among the companies that struggled with low customer demand.

In early trading, Samsung shares dropped 1.4% compared to a 0.3% decline in the benchmark index (.KS11), following the company’s customers’ earnings results.

Microsoft (MSFT.O) launches a new tab that displays AMD and Alphabet (AMD). O), experts claimed that the new tab reveals unmet expectations.

See also Pakistan’s 5G Revolution Launches in August 2024

Exit mobile version