One brother of storage is making a big price increase: Samsung Electronics released the full-year financial report for 2019, and profits fell 51% year-on-year

January 30th news, Samsung Electronics released Q4 and full-year financial reports for 2019, with quarterly revenue of 59.88 trillion won (approximately $ 50.8 billion), a year-on-year increase of 1%, and operating profit of 7.16 trillion won (approximately 61 Billion US dollars), down 34%, net profit of 5.23 trillion won, about 4.4 billion US dollars, down 38% year-on-year.

In 2019, Samsung's annual revenue was 230.4 trillion won, or approximately 195.6 billion U.S. dollars, a year-on-year decrease of 5.5%, operating profit was 27.77 trillion won, a 52.8% year-on-year decrease, and net profit was 21.74 trillion won, or approximately 18.5 billion dollars. It was down 51% year-on-year.

The main reason for Samsung's profit decline is the semiconductor business, especially the memory chip business, which is related to the decline in memory and flash memory prices last year. Among Samsung's major business units, the semiconductor sector contributed 16.79 trillion won in Q4 quarter, and memory chips accounted for 13.18 trillion won, a year-on-year decrease of 15% and a month-on-month decrease of 1%.
From the perspective of profit, among the operating profit of 7.16 trillion won, the semiconductor business contributed 3.45 trillion won, still occupying more than half of the share, but it decreased by 4.32 trillion won compared with the same period last year, and it decreased by 0.4 trillion won compared with the previous month.

In addition, Samsung ’s DP display division also contributed a significant decline in profits, from 0.97 trillion in the same period last year to 0.22 trillion, making 0.76 trillion won less, a big drop of 0.95 trillion won from the previous month.

In short, in the Q4 quarterly financial report, due to the sharp decline in profits of the memory chip and panel business, operating profit decreased by 34%. However, on the bright side, the decline in the semiconductor business in Q4 has been decreasing, and the memory requirements for servers and mobile products are improving. Considering that memory prices have started to rise in the first half of the month, Samsung ’s memory and flash memory will be 2020. Business is expected to rebound.