Samsung experiences slow performance in Q4 2024 but anticipates upcoming foldable devices to drive growth
Samsung experienced a slow end to 2024 with a decline in profits compared to the previous quarter, hinting at a shift towards new foldable devices in 2025. The tech giant mentioned plans to revamp its lineup of foldable smartphones with enhanced designs to entice customers and boost sales.
The Galaxy Z Flip 6 and Fold 6 did not garner as much interest as their predecessors, with lackluster pre-orders for the 2024 models. However, Samsung is optimistic about the potential of foldable devices to drive revenue in the coming year, focusing on innovation and diversification in form factors.
In its Q4 2024 earnings report, Samsung disclosed a slight decrease in both revenue and operating profits, attributing this downturn to market conditions and increased expenditures. Despite the quarterly decline, the company achieved the second-highest annual revenue total ever, generating 300.9 trillion KRW.
Samsung’s mobile and network businesses also experienced a dip in revenue for the MX segment due to decreased interest in flagship smartphones like the Galaxy S24 series. However, overall profits were positively impacted by the success of the Galaxy AI trio in 2024.
Looking ahead to 2025, Samsung aims to expand its foldable lineup with a focus on durability and a wider range of device options to attract customers. The company emphasized the importance of introducing new foldable products with improved designs to stimulate consumer demand and drive growth.
On the semiconductor front, Samsung achieved record-high revenue and operating profits in the chip sector in Q4 2024, despite uncertainties surrounding chip demands in the upcoming quarters. The company remains optimistic about potential turnarounds in chip demands in the second quarter of 2025.
Reports suggest that Samsung may reduce its foldable device shipments in 2025 following a lukewarm response to its 2024 models. However, the company remains committed to diversifying its foldable lineup with innovative form factors to stay competitive in the market.
In conclusion, Samsung’s focus on enhancing its foldable smartphone offerings and exploring new form factors signals a strategic shift towards innovation and customer-centric products in 2025. Despite challenges in the mobile and semiconductor sectors, the company remains optimistic about its prospects for growth and profitability in the coming year.