Samsung hopes to revive its flagging revenues with the Galaxy S24 and artificial intelligence.

The company is banking on the Galaxy S24 devices to help it recover this year.

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Samsung’s 2022 earnings fall was severe, and it hasn’t been able to recoup. The Korean business stated in its most recent financial report that its annual sales for the fiscal year 2023 were KRW 258.94 trillion ($194 billion), and its operating profit was KRW 6.57 trillion ($4.9 billion).

The figures are much lower than those from the previous fiscal year, particularly the latter, as Samsung reported an operating profit of KRW 43.38 trillion ($35 billion) for 2022, a $6.9 billion decrease from the previous year largely because of the poor demand for its processors and smartphones. The Wall Street Journal claims that these figures show Samsung’s lowest profits in more than ten years.

According to the corporation, there have been some signs of improvement in its memory sector, but not enough to prevent operational losses of KRW 2.18 trillion ($1.63 billion) for the fourth quarter of 2023. This is the semiconductor division’s largest-ever yearly loss, and it’s the first in 15 years since the global financial crisis of 2008, according to Nikkei. Due to the Christmas season, Samsung’s visual display and digital appliances segment reported operational losses of KRW 0.05 trillion ($37.5 million) even though TV sales were strong in the fourth quarter. Because of “the fading of new-product effects” from prior flagship models and fewer smartphone sales, Samsung’s mobile division also saw a quarter-over-quarter fall in earnings and sales.

Samsung intends to boost its earnings “by increasing sales of high value-added products,” such as parts intended for generative AI technologies, for the first quarter of 2024. Although it acknowledges that its customers are currently decreasing their stocks, it anticipates better demand for its chips in the PC and mobile industries this year. As a result, it may take some time for its profitability to meaningfully recover. However, Samsung has high expectations for the Galaxy S24 series and thinks the AI capabilities of the phones may help its mobile division expand by double digits by 2024. The most basic Galaxy S24 phone costs $800, while the S24 Ultra costs $1,300. The Galaxy S24 phones are currently shipping.

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