For the first time in 24 years, Sony outperformed Samsung in terms of revenue

For the first time in 24 years, Sony outperformed Samsung in terms of revenue

Over the past decade, the South Korean conglomerate Samsung has witnessed immense growth. The major contributor to this growth is the chip division of the company. Due to its dominance in the memory chip market, the firm produced an enormous amount of money. In other words, almost 14 years ago, the operational profit of nine of the largest Japanese electronics companies was not even close to half of what Samsung Electronics was generating on its own.

As of now, things have improved on the Japanese firm’s end since Samsung is going through tough times. The main reasons behind this downfall include slow supply and sales in the memory market. For the first time in more than 20 years, Sony now has the chance to outperform Samsung in operating profit.

Recently, Samsung unveiled the earnings guidance for Q4 2023. Reportedly, the company observed a 34.4% decline in profits. As compared to the 1.17 trillion yen or $7.95 billion operating profit of Sony, Samsung could end up with 7.49 trillion won or $5.62 billion for the year. These figures indicate that in 2023, Sony will earn around $2 billion more than Samsung Electronics.

Well, this is the first time that Sony has outperformed Samsung in terms of operating profit since 1990, despite the fact that Sony was the company that was practically driven out of the smartphone industry by Samsung. The semiconductor market downturn is mostly to blame, as things haven’t improved enough for Samsung to report record earnings once more.

According to experts, Sony was successful in generating more profit because of its modified strategy, which involved restructuring, globalization, digital transformation, mergers, and acquisitions. Samsung anticipates a rebound in the semiconductor business in 2024, but it might take some time before it can again outperform Sony in terms of profitability.

February 1, 2024