- Samsung plans to continue launching new lifestyle digital appliances and premium products
- The company also sees uncertainties from global economic sluggishness
Samsung Electronics has reported financial results for the fourth quarter ended 31 December 2019 and the fiscal year 2019. The company posted KRW 59.88 trillion in consolidated quarterly revenue and KRW 7.16 trillion in quarterly operating profit. For 2019, Samsung reported KRW 230.40 trillion in revenue and KRW 27.77 trillion in operating profit.
The consumer electronics business also reported a YoY increase in earnings, led by growing sales of premium products including QLED TVs and new appliance offerings. Looking ahead to 2020, Samsung expects improvements in overall business performance but also sees continued uncertainties in the global business environment.
In the consumer electronics division, the company will seek to increase sales of QLED 8K TVs and launch new premium appliances such as Bespoke and new lifestyle models. “Samsung Electronics’ capital expenditure in 2019 totaled at KRW 26.9 trillion, including KRW 22.6 trillion spent on semiconductors and KRW 2.2 trillion on displays. In 2020, the Company will be flexible in capex execution to meet changing demand from markets, while continuing investment in infrastructure and mid- to long- term business opportunities,” read Samsung’s official statement.
Premium TVs and appliances shine in fourth quarter
The consumer electronics division, comprised of the visual display and digital appliances businesses, recorded KRW 12.71 trillion in consolidated revenue and KRW 0.81 trillion in operating profit for the fourth quarter of 2019. In the fourth quarter, earnings for the visual display business improved both QoQ and YoY on the back of successful promotion efforts during the year-end peak season. Sales of QLED TVs and TVs with 75-inches-and-above screens were especially notable, showcasing an improved product mix for the company.
In particular, QLED TV sales in the fourth quarter exceeded twice the amount sold in the same period a year ago. However, the company forecasts market demand in the first quarter to decline QoQ following the year-end peak season, and also YoY due to weaker demand in developed markets.
In 2020 on a whole, the global TV market faces geopolitical risks, but global TV demand is expected to climb thanks to sports events like the UEFA European Football Championship and the Summer Olympic Games. For the digital appliance business in the fourth quarter, earnings rose on increased demand in emerging markets including India. Revenue and profit both improved YoY as sales of premium products like the Bespoke refrigerator and large dryers grew.
“Samsung plans to continue launching new lifestyle digital appliances and premium products to seek growth in the first quarter. For the whole year, the company sees uncertainties from global economic sluggishness but will aim to offset risks through the expansion of its premium lineup and more B2B opportunities,” read Samsung’s official statement.