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Samsung Electronics Reports Fourth-Quarter and FY 2024 Results

Samsung’s 2024 revenue reached KRW 300.9 trillion, its second-highest ever, but Q4’s slowdown exposed challenges in HBM execution, foundry utilization and device demand.
From TheFinanceBase Team7 min to read
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Samsung Electronics closed 2024 with KRW 300.9 trillion in revenue and KRW 32.7 trillion in operating profit, but the final quarter showed the recovery losing momentum. For the three months ended December 31, revenue was KRW 75.8 trillion and operating profit was KRW 6.5 trillion. Record quarterly revenue in the Memory Business did not prevent sequential profit declines as conventional device demand softened, HBM3E deliveries awaited product optimization, and foundry utilization and ramp costs pressured earnings.

These are historical results announced January 31, 2025. The company’s comments about 2025 below are management expectations from that announcement, not current forecasts.

Samsung’s Q4 and FY 2024 results at a glance

The quarterly figures cover October through December 2024; the full-year figures cover the fiscal year ended December 31. Consolidated results are distinct from business-unit figures, which Samsung’s earnings presentation says can include intersegment sales and may reflect an organizational structure predating later reorganizations.

Measure Q4 2024 FY 2024
Consolidated revenue KRW 75.8 trillion KRW 300.9 trillion
Consolidated operating profit KRW 6.5 trillion KRW 32.7 trillion
Capital expenditure KRW 17.8 trillion KRW 53.6 trillion

Samsung’s annual revenue was its second-highest on record, behind 2022. Yet Q4 revenue and operating profit fell sequentially. Operating profit was KRW 2.7 trillion lower than in Q3; that implies Q3 operating profit of about KRW 9.2 trillion, calculated from Samsung’s stated decline. Samsung attributed the weaker quarter to soft IT-product conditions and higher expenses, including research and development. Samsung’s results announcement

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Why a strong year ended with a weaker quarter

The annual recovery was led by semiconductors, especially memory. A higher blended DRAM average selling price and sales of higher-value products helped the Memory Business reach record Q4 revenue. Across the year, memory sales recovered substantially from the previous downturn. Samsung also said Galaxy S24 flagship sales grew by double digits for the year, with tablets and wearables increasing in value and shipments.

That broad annual improvement did not mean every business was growing at year-end. PC and mobile demand remained soft, the benefit of flagship smartphone launches faded, and some customers delayed memory purchases while waiting for optimized HBM3E products. At the same time, advanced-node ramp costs and R&D spending increased, while low foundry utilization left fixed costs spread across less production.

Memory was strong in sales, but not uniformly in earnings

Samsung’s presentation puts Memory Business sales at approximately KRW 23.0 trillion in Q4 2024, up from KRW 22.3 trillion in Q3 2024 and KRW 15.7 trillion in Q4 2023. Full-year segment sales rose from approximately KRW 44.1 trillion in 2023 to KRW 84.5 trillion in 2024. These are segment figures, not consolidated company revenue, and Samsung cautions that business-unit sales can include intersegment transactions. Samsung’s Q4 2024 earnings presentation

Demand for HBM, high-density DDR5 server memory and other higher-value products supported the revenue record. But Memory operating profit edged down sequentially despite the higher sales, as R&D outlays and initial advanced-node capacity ramp costs weighed on the result. This distinction matters: strong product demand and sales do not automatically translate into higher profit when development and production costs are rising.

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HBM3E timing was the key execution question

High-bandwidth memory (HBM) is used alongside AI accelerators in data centers, making it a strategically valuable market. Samsung described demand volatility tied to uncertainty around AI-chip export controls and customers’ decisions to wait for optimized HBM3E products. It said mass production and initial supply of its optimized 12-stack HBM3E product were expected from late Q1 2025, with a more meaningful delivery ramp expected from Q2. The company also expected the transition from eight-stack to 12-stack HBM to accelerate in Q2. These were management expectations stated on the earnings call, not guaranteed delivery outcomes. Samsung’s Q4 earnings-call script

The evidence supports a timing and qualification challenge, not a claim that Samsung had been shut out of HBM. The commercial significance depended on converting product optimization and customer qualification into sustained shipments.

Samsung’s stated 2025 memory plan

Samsung expected overall memory-market demand to begin recovering from Q2 2025. Its plan was to reduce exposure to legacy DRAM and NAND and raise the mix of advanced and higher-value products, including HBM, DDR5, LPDDR5x, GDDR7 and server SSDs. It planned to move DRAM shipments toward DDR5 and LPDDR5x using its 1b-nanometer process, migrate NAND production from V6 toward V8, and expand sales of V7 QLC-based server SSDs.

The near-term picture in the company’s call commentary was more guarded: mobile and PC customers were still reducing inventories in Q1, while AI-server demand remained strong but could vary with GPU availability. Samsung expected Q1 DRAM bit growth to fall by a high-single-digit percentage sequentially. That forecast underscores the difference between a longer-term AI opportunity and near-term demand across the broader memory market.

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Foundry and System LSI faced different execution problems

Foundry: utilization, costs and milestones

Samsung said its Foundry Business was hurt by lower utilization, higher advanced-node R&D expenses and fixed-cost burdens, alongside sluggish mobile demand. Its 2nm gate-all-around (GAA) technology remained under development, with a design kit distributed to customers. Separately, Samsung said its 4nm process was mass-producing high-performance-computing products with stable yields.

Those milestones should not be conflated. A technology under development, a customer design kit, a successful product tape-out, mass production and meaningful commercial revenue are different stages. Samsung’s 2025 plan was to stabilize and ramp 2nm GAA, strengthen its 4nm technology and design infrastructure, and pursue AI and high-performance-computing orders; the announcement did not establish that 2nm had already achieved broad commercial production.

System LSI: mobile weakness and delayed flagship SoC entry

System LSI earnings declined amid weak mobile demand and higher R&D spending. Samsung expected flagship-phone launches to help first-quarter demand for image sensors and display-driver ICs, but said earnings would remain weak because its entry into the flagship system-on-chip market was delayed. Its stated priorities included improving its flagship Exynos SoC, working more closely with Foundry and pursuing high-resolution image-sensor opportunities, including 200-megapixel applications. Samsung’s Q4 earnings-call script

Devices, displays and consumer businesses showed mixed demand

Mobile eXperience and Networks

The combined Mobile eXperience and Networks businesses reported Q4 revenue of KRW 25.8 trillion and operating profit of KRW 2.1 trillion. MX sales and profit declined sequentially as the boost from new flagship launches faded. Samsung’s near-term response centered on the newly launched Galaxy S25 series, AI features and a flagship-focused sales mix. It also planned to strengthen foldables and extend AI features across tablets, notebooks and wearables, as well as a planned XR device.

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Networks revenue and profitability improved in major markets during Q4. Samsung expected further improvement from new orders, operator network expansion and greater adoption of virtualized and open RAN technologies. These expectations were forward-looking statements made with the results announcement.

Samsung Display

Samsung Display reported Q4 revenue of KRW 8.1 trillion and operating profit of KRW 0.9 trillion. Mobile-display profit declined sequentially amid weak smartphone demand and more competition. Large-display revenue, by contrast, grew by double digits sequentially, supported by year-end TV sales. For 2025, the company emphasized high-end mobile products, premium televisions and monitors, and expansion into IT and automotive applications.

TVs, appliances and Harman

The Visual Display, Digital Appliances and Harman businesses together reported Q4 revenue of KRW 14.4 trillion and operating profit of KRW 0.2 trillion. Those figures are for the combined group, not separate results for each business. Visual Display benefited from seasonal promotions and a better sales mix, but higher costs and intense competition weakened profitability amid broadly stagnant TV demand. Digital Appliances profitability fell because of competition, although Samsung said its year-over-year recovery trend continued through cost efficiencies. Harman benefited from year-end consumer-audio demand, while automotive orders remained stable.

Samsung’s consumer-business priorities for 2025 included AI-enabled televisions and “Vision AI,” premium BESPOKE AI appliances, connected-device experiences through SmartThings, Knox security integration, and premium audio and automotive expansion through Harman.

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What the KRW 53.6 trillion investment program means

Samsung’s 2024 capital expenditure totaled KRW 53.6 trillion: KRW 46.3 trillion in the Device Solutions semiconductor division and KRW 4.8 trillion at Samsung Display. Q4 capital expenditure was KRW 17.8 trillion, including KRW 16 trillion in Device Solutions. The figures show continued investment during a cyclical slowdown, particularly in semiconductors. Samsung’s results announcement

That spending has two sides. Capacity and technology investment can support future HBM and advanced-node production, but investment also brings depreciation and ramp costs, and underused capacity makes it harder to absorb fixed costs. Capex alone does not show whether demand, yields or returns will justify the outlay.

What the 2024 results did—and did not—show

For investors and industry watchers, the most useful follow-ups identified by this report are:

  • Memory mix and pricing: whether growth in HBM, DDR5 and server SSDs can offset weak PC and mobile demand and declining legacy-product exposure.
  • HBM execution: whether optimized HBM3E moves from qualification and initial supply to sustained customer deliveries.
  • Foundry economics: whether utilization improves and whether 2nm development progresses beyond design-kit availability toward production and revenue.
  • Device demand: whether flagship sales and AI features support premium mix as the launch boost fades and competition persists.
  • Investment returns: whether the large semiconductor outlay converts into profitable output rather than adding cost during periods of weak utilization.

The January 31, 2025 release therefore showed a real annual recovery, powered heavily by the memory cycle, but not yet a clean, broad-based expansion. The fourth quarter made the next test clear: translate AI-related memory demand into timely, profitable shipments while improving foundry utilization and navigating soft conventional-device demand.

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