Samsung Quarterly Profit declines 34 Percent, Company Sees Smartphone Demand Recovering in This Year

South Korean consumer electronics company Samsung's profit has declined by 34 percent in the fourth quarter. However, the company expects recovery in demand for tech devices and memory chips this year. This largest company manufacturing memory chips said that with the increase in the use of artificial intelligence, companies making personal computers and smartphones can install better chips in their devices. Apart from this, demand is also expected to increase due to the need to replace old servers.

“Recovery in demand for memory chips is expected this year. However, there may be disruptions due to interest rate policies and geopolitical issues,” the company said in a statement. Samsung said operating profit in October-December stood at KRW 2.8 trillion (about $2.11 billion), compared to KRW 4.3 trillion in the same period a year earlier. The company suffered a loss of KRW 14.9 lakh crore in the chip business for the entire last year. Samsung had achieved a profit of KRW 23.8 lakh crore in this business in the same quarter last year.

However, the company's loss of KRW 2.18 lakh crore in this business in the fourth quarter is less compared to the loss in other quarters last year. Earlier, for Samsung, this business has been a big contributor to the company's profit. Samsung will start manufacturing laptops in India by the end of this year. The company's factory is in Noida, Uttar Pradesh. Samsung smartphones are manufactured in the country. Along with the sale of these smartphones, they are also exported.

In a media report, TM Roh, President of the company's mobile division, has been quoted as saying that Samsung is preparing to manufacture its laptops in the country. He said, “Noida is an important production base for Samsung. It is the second largest base for the company. There may be some changes in this factory as per the international demand.” Last year, the Central Government had approved the Production-Linked Incentive (PLI) Scheme 2.0 with an incentive of Rs 17,000 crore to promote manufacturing of IT hardware like laptops and tablets in the country. It is expected to produce products like personal computers, servers, laptops and tablets worth about Rs 3.35 crore in six years.

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