Samsung posts record revenue in 2022, but dwindling profits

31 January 2023
Sales of Galaxy phones declined in Q4, both QoQ and YoY, but the full year saw a 10% increase.

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UltraHD, 31 Jan 2023They increased prices in Europe thinking they'll get m... moreMajority of people in western markets don't pay phones outright. Most buy them through contracts/financing plans. There won't be too much of a difference in monthly commitment prices, especially when people are due for an upgrade. This is why $1000 phones are still selling well in most western countries.

    NoBot, 31 Jan 2023I believe EU sales will still be good in 2023, due to the f... moreOnly A5x value Decreased, A33 had nice upgrade over A32 5g, same to A23 5G, A14 shaping to be beast low end if you can get E1330 version.

    They need new Enthuasim device between their flagship and A54, its huge gap between $300/400 device and $800/900 device, something with sd8+ gen 1 or D8100

      HopeFilledIdiot, 31 Jan 2023If they stop charging the "Samsung Premium" for t... moreWait huh? Making them cheaper doesn't increase profits.
      Cost are getting higher due to component shortages, covid, and inflation. The fact that Samsung has more revenue but dwindling profits mean Samsung is selling more but it's being offset by the rise in cost. Reducing prices will only reduce profit even more. This data shows that demand is strong for Samsung that there's actually an opportunity to raise prices.

      What Samsung needs to do is stop making so many models/variations of the same thing. Less but more focused SKUs will help reduce cost. It's exactly what Samsung is doing by eliminating some models like the A74.

        • N
        • NoBot
        • MB{
        • 31 Jan 2023

        I believe EU sales will still be good in 2023, due to the fact that there might be a substantial share of customers who held back in recent years because of the Exynos chip constraint. The 23 lineup seems simply to be a well rounded phone, and both may just be good enough this year. The A series instead got worse and worse, up to a point where only people would by them who can't tell how low their value is,, and this type of customer tends to hold their phones until they really get broken.

          • I
          • Indian
          • 7tU
          • 31 Jan 2023

          Tell me which Samsung mobile is better in in Budget category U have Moto Mi Infinix Lava pova 🤔🤔🤔🤔 In Midum category Moto Realme Infinix Mi poco is ruling only in High category Samsung doing best which is not enough for competition

            • I
            • Indian
            • 7tU
            • 31 Jan 2023

            No Budget category No Medium category. In Budget category Using PLS displays with not much features u have no option Strandard Natural like screen mode in Medium category they r Running from Amoled displays n Fast charging. In recent M04 F04 mobiles have only 8wat charging

              They increased prices in Europe thinking they'll get more profit for the 90% same device as S22??? These companies are becoming something even more than just crazy.
              But again, people will buy S23 because ,,the newer, the better" ,,S22 is too old" etc. 😐

                So what happens to the remaining stock of phones that don't sell well? Lmao.

                  • ?
                  • Anonymous
                  • tZ0
                  • 31 Jan 2023

                  Anonymous, 31 Jan 2023So basically, they got record revenue from the sales but th... moreRevenue is total cash/income from sales.
                  Revenue - Costs (Labor and Manufacturing) = Operating Profit.
                  Operating Profit - Taxes =Net Profit.

                  That's the sinplified version.

                    • ?
                    • Anonymous
                    • Ci%
                    • 31 Jan 2023

                    HopeFilledIdiot, 31 Jan 2023What I wanted to imply was that the quantity of sales would... moreLOL

                    If samsung decreases prices of S and Z by $100, samsung needs to sell much more devices to make same revenue.
                    To sell more devices, samsung needs to make more phones. This means more costs.
                    In the end, profit would decrease ...

                      • ?
                      • Anonymous
                      • gqb
                      • 31 Jan 2023

                      HopeFilledIdiot, 31 Jan 2023What I wanted to imply was that the quantity of sales would... moreAnd let's not forget their wireless earbuds, laptops, tablets, TVs, and external monitors.

                        • ?
                        • Anonymous
                        • gqb
                        • 31 Jan 2023

                        So basically, they got record revenue from the sales but the operating profit has gone down (whatever operating profit is in the first place). Hats off to people who learn Accounting and Business study, they are complicated.

                          Hemedans, 31 Jan 2023Simple math -they have Record revenue and Sales increase 8... moreWhat I wanted to imply was that the quantity of sales would offset whatever less revenue they generated.

                          More devices sold -> More than the "expected loss" caused by lowering the price -> profits

                            HopeFilledIdiot, 31 Jan 2023If they stop charging the "Samsung Premium" for t... moreSimple math
                            -they have Record revenue and Sales increase 8% YoY
                            -They have lower profit.

                            That means they have to increase price to get more profit and not decreasing them, Decreasing price means they will get even lower profit.

                              If they stop charging the "Samsung Premium" for their devices, and start pricing them fairly, I'm sure they'd see record profits

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