black samsung android smartphone on top of brown wooden tablke
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On Wednesday, Samsung released its earnings results for the fourth quarter in a row, closing a miserable year in which it also lost its position as the leading manufacturer of smartphones worldwide.The South Korean tech giant reported a 35% decline in profit on Wednesday, indicating the persistently low demand for consumer electronics and the processors that power them.According to the company, its operational profits for the December quarter decreased to 2.8 trillion won (almost $2.1 billion) from 4.3 trillion won ($3.5 billion) a year earlier. This is generally in line with the earnings prediction that the company released earlier this month.Samsung, however, is hopeful that this year will see a rise in the market for mobile devices.The business informed investors that it expects the smartphone market to grow in 2024, especially with the introduction of new products that are expected to “drive an improvement in demand,” like smartphones with artificial intelligence built in.Due to the year-end holiday shopping season, which usually marks a high period for retailers, Apple (AAPL) surpassed Samsung, which has also long held the title of being the world’s top smartphone seller.The manufacturer of iPhones had a 20.1% global market share in 2023, slightly more than Samsung’s 19.4%, according to market research firm IDC.The South Korean company reported “lower smartphone sales” in the fourth quarter, but compared to the preceding three months, it saw an increase in demand for high-end devices. According to the report, tablet sales increased as well because new product introductions attracted users.Samsung is facing challenges on several fronts. The demand for semiconductors has decreased over the past year because to the ongoing global economic instability and the historically low consumer demand for gadgets during the COVID-19 pandemic. The largest memory chip manufacturer in the world, Samsung, has suffered enormous losses as a result.The company announced on Wednesday that its device solutions segment, which includes the memory chip business, had lost 14.9 trillion won (about $11.2 billion) for 2023, as opposed to making 23.8 trillion won ($17.8 billion) in profit the year before.But according to a statement released by Samsung on Wednesday, “despite various potential obstacles, including interest rate policies and geopolitical issues,” the market is likely to rebound gradually this year.According to the corporation, there was a minor improvement in performance during the fourth quarter, as evidenced by the higher prices it was able to get for memory chips.Samsung did, however, issue a warning that difficulties would persist. “The company anticipates earnings in the first half of 2024 to show a moderate improvement, with a more significant improvement expected to take place in the second half of the year,” the statement read. “Ongoing macroeconomic uncertainties are expected to weigh on the business environment in the near-term.”

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