Samsung Electronics has released its financial results for the fourth quarter and fiscal year 2024, revealing a mixed performance amidst challenging market conditions. While the company achieved the second-highest annual revenue on record, reaching KRW 300.9 trillion, operating profit experienced a decrease. This editorial will delve into the key aspects of Samsung’s earnings report, highlighting strengths, weaknesses, and strategic focuses for the upcoming year. Key Highlights from the Earnings Report Revenue: Samsung posted KRW 75.8 trillion in consolidated revenue for the fourth quarter and KRW 300.9 trillion for the full year 2024. Operating Profit: The company reported KRW 6.5 trillion in operating profit for the fourth quarter and KRW 32.7 trillion for the full year. However, operating profit decreased on a quarter-on-quarter basis due to soft market conditions, particularly for IT products, and increased expenditures in areas like R&D. Semiconductors (DS Division): The DS Division reported KRW 30.1 trillion in consolidated revenue and KRW 2.9 trillion in operating profit for Q4. The Memory Business achieved record-high fourth-quarter revenue, driven by increased sales of HBM and high-density DDR5 for servers. However, operating profit decreased slightly due to increased R&D expenses and ramp-up costs for cutting-edge nodes. Display (SDC): Samsung Display Corporation (SDC) posted KRW 8.1 trillion in consolidated revenue and KRW 0.9 trillion in operating profit for the fourth quarter. Profits declined QoQ due to sluggish smartphone demand and rising competition in the mobile display business. Mobile eXperience (MX): The MX and Networks businesses posted KRW 25.8 trillion in consolidated revenue and KRW 2.1 trillion in operating profit for the fourth quarter. The MX Business experienced a QoQ decrease in sales and profit due to the fading effects of new flagship model launches. Visual Display (VD): The VD and Digital Appliances (DA) Businesses posted KRW 14.4 trillion in consolidated revenue and KRW 0.2 trillion in operating profit in the fourth quarter. The VD Business saw revenue increase due to expanded sales and an improved sales mix through peak-season promotion, but profitability decreased slightly due to increased costs from intensified competition. Capital Expenditure: Samsung’s capital expenditures in 2024 reached KRW 53.6 trillion, with KRW 46.3 trillion spent in the DS Division and KRW 4.8 trillion in SDC. Strategic Focus for 2025 AI and Premium Products: Samsung aims to drive growth through increased sales of smartphones with differentiated AI experiences and premium products in the DX Division. The company plans to enhance technological and product advantages in AI and meet future demand for high-value-added products. Technology Leadership: With market conditions expected to remain soft in the first half of 2025 for the DS Division, Samsung will focus on securing technology leadership for mid- to long-term growth. Product Competitiveness: SDC will look to strengthen its leading position in high-end products by enhancing product competitiveness. Mobile AI Leadership: The MX Business will reinforce its mobile AI leadership by providing more personalized, differentiated AI experiences and strengthening the foldable lineup. Vision AI: The VD Business plans to lead the AI screen market under Samsung’s “Home AI” vision, integrating AI into all connected device experiences based on the SmartThings platform. Challenges and Opportunities Semiconductor Recovery: The memory market is expected to recover from the second quarter of 2025. Samsung’s Memory Business is reducing the portion of legacy DRAM and NAND products to align with market demand and accelerating the migration to cutting-edge nodes. Flagship SoC Market: The System LSI Business expects earnings to remain weak in the first quarter of 2025 due to delayed entry into the flagship system-on-a-chip (SoC) market. Competition: SDC faces rising competition in the mobile display business. The VD Business experienced decreased profitability due to intensified competition amid stagnant TV demand. Samsung’s financial results for 2024 reflect the challenges posed by soft market conditions and increased competition. However, the company’s strategic focus on AI, premium products, and technology leadership positions it for future growth. As Samsung navigates ongoing uncertainties in demand, its ability to capitalize on opportunities in the memory market and flagship SoC market will be critical to its success.

Apple has announced its financial results for the first fiscal quarter of 2025, revealing record revenue and earnings per share (EPS). The company posted a quarterly revenue of $124.3 billion, a 4% increase year-over-year, and a diluted EPS of $2.40, representing a 10% increase year-over-year. These figures indicate a strong performance during the holiday season, driven by Apple’s latest products and services Key Highlights from the Earnings Report Record Revenue: Apple reported its best quarter ever, with revenue reaching $124.3 billion, up 4% from the previous year. EPS Growth: The company’s strong operating margins led to a new all-time record in EPS, with double-digit growth. The diluted EPS reached $2.40, up 10% year over year. Services Growth: Revenue from services reached a new all-time high, demonstrating the increasing importance of this segment to Apple’s overall performance. Services generated $26.34 billion in revenue, compared to $23.12 billion in the same period last year. Installed Base Growth: Apple’s installed base of active devices has reached a new all-time high across all products and geographic segments. Shareholder Returns: Apple returned over $30 billion to shareholders through dividends and share repurchases. The board of directors has declared a cash dividend of $0.25 per share, payable on February 13, 2025. Regional Performance Americas: Net sales increased to $52.65 billion from $50.43 billion. Europe: Net sales increased to $33.86 billion from $30.40 billion. Greater China: Net sales decreased to $18.51 billion from $20.82 billion. Japan: Net sales increased to $8.99 billion from $7.77 billion. Rest of Asia Pacific: Net sales slightly increased to $10.29 billion from $10.16 billion. Product Category Performance iPhone: $69.14 billion. Mac: $8.99 billion. iPad: $8.09 billion. Wearables, Home and Accessories: $11.75 billion. Financials In terms of Apple’s condensed consolidated statement of operations, the following apply: Gross margin: $58.28 billion Operating income: $42.83 billion Net income: $36.33 billion. Apple Intelligence Tim Cook, Apple’s CEO, highlighted the role of Apple silicon in unlocking new possibilities for users through Apple Intelligence, which enhances apps and experiences. Apple Intelligence is expected to be available in more languages this April. Risks and Uncertainties Apple’s press release contains forward-looking statements that are subject to risks and uncertainties. These include: Global and regional economic conditions Competition and rapid technological changes Reliance on third parties Information technology system failures and data security risks Legal proceedings and government regulations Apple’s first-quarter results for fiscal year 2025 demonstrate the company’s continued ability to innovate and drive growth. With record revenue, strong EPS growth, and a growing services business, Apple is well-positioned for future success. The company’s focus on Apple Intelligence and its commitment to returning value to shareholders further enhance its appeal to investors. However, it is important to acknowledge the risks and uncertainties that Apple faces in a rapidly changing global landscape.