According to its latest financial report, South Korean tech giant Samsung recorded higher-than-expected quarterly revenue for Q4 2024, despite a sharp decline in profits due to significant investments in research and development.
In Q4 2024, Samsung achieved revenues of 75.8 trillion won ($52.2 billion), marking a 12% increase from the same period last year and surpassing forecasts of 75.4 trillion won. However, profits amounted to 6.5 trillion won ($4.48 billion), falling short of the projected 6.8 trillion won ($4.69 billion).
For the entire fiscal year 2024, Samsung reported revenues of 300.9 trillion won ($208 billion) and profits of 32.7 trillion won ($22.6 billion), with net income reaching $23.8 billion. This is the second-highest annual revenue in Samsung’s history, just behind the record set in 2022.
Samsung sees good news despite record-low smartphone sales – 1Samsung is determined to invest heavily in AI features to compete with Apple in the premium smartphone segment (Illustration: Cnet).Despite the overall growth in revenue and profits in 2024, Samsung faced challenges in the mobile market. Mobile device sales and profits declined in Q4 2024, with revenues of 25.8 trillion won ($17.78 billion) and profits of 2.1 trillion won ($1.45 billion).
According to IDC, Samsung produced only 223.4 million smartphones in 2024, the lowest output in a decade, compared to 318.2 million units in 2014. This shift allowed Apple to reclaim the top spot in the mobile market with 232.1 million iPhones shipped, capturing an 18.7% market share, while Samsung held 18%.
Samsung remains committed to investing in artificial intelligence to boost revenues, particularly in the premium smartphone segment. “Samsung has focused on the value proposition of its high-end devices, bringing them closer to Apple’s market share,” noted Nabila Popal, Senior Director at IDC.
However, both Samsung and Apple face stiff competition from Chinese manufacturers offering powerful devices at competitive prices.
Both companies are losing market share in China, the world’s largest smartphone market, and risk being overtaken by Chinese brands if they do not adopt effective strategies.
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