Samsung focuses on premium and lifestyle product

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Samsung Electronics reported financial results for the fourth quarter and the fiscal year 2021. Regarding the fourth quarter, the company recorded KRW 76.57 trillion in consolidated revenue, and KRW 13.87 trillion in operating profit. For the full year, it reported KRW 279.6 trillion in revenue, a new historic high and KRW 51.63 trillion in operating profit.

The fourth quarter revenue growth was driven mainly by the finished product businesses, with expanded sales of premium smartphones, including foldable phones, as well as TVs and home appliances. Operating profit declined from the previous quarter due to a special bonus payment to employees, but rose from a year earlier, driven by the semiconductor businesses.

The CE businesses reached KRW 15.35 trillion in consolidated revenue and KRW 0.7 trillion in operating profit for the fourth quarter of 2021. The overall TV market grew quarter-on-quarter due to year-end seasonality, but decreased year-on-year due to fading effects of pent-up demand. The Visual Display Business saw strong sales of its premium and lifestyle products, but recorded slightly lower operating profit quarter-on-quarter due to rising costs, including for logistics. The Digital Appliances Business saw slow market growth in 4Q due to fading pent-up demand, in addition to a continued rise in material and logistics costs. However, Samsung achieved better profits compared to the previous quarter, thanks to an improved product mix and operational efficiency.
In the first quarter, market demand is expected to decrease year-on-year for both TVs and home appliances and high material and logistics costs are expected to persist for home appliances.

The company will continue its focus on premium and lifestyle product sales and improved operational efficiency. The Visual Display Business plans to expand premium product sales with promotional activities such as those associated with regional sporting events. It will also focus on sales of its Lifestyle category, including The Freestyle, a new product announced at CES 2022. The Digital Appliances Business aims to further expand its Bespoke lineup in global markets and enhance online sales.

«In 2022, while market uncertainties are projected to remain, Samsung expects stronger demand for premium and super large TVs – the company explains -. In addition to its continued focus on premium and lifestyle TVs, it plans to offer an improved home entertainment experience, with various services and the Smart Hub, optimized for in-home activities. The company expects a sluggish market for home appliances, but expects demand to edge up for new-category lifestyle products. Samsung plans to further expand its Bespoke lineup and continue to launch new-category products that reflect changing consumer needs.»