Samsung released its Q4 2022 and full-year financial results, revealing a record-breaking annual revenue of $244 billion, up 8% from 2021. However, the operating profit dropped by 15% from the previous year to $3.5 billion.

In Q4, the Korean giant sales declined across almost all divisions due to weak demand caused by the global slowdown. The Mobile Experience (MX) division experienced a 9% YoY revenue decline in Q4, but overall sales showed an increase of 10% from the previous year. Although profits declined both quarterly and annually in Q4 and also for the full year, the situation was not improved.

As a result of inflation and geopolitical instability, Samsung attributes this contraction to a contraction in the mass market.The demand for Samsung’s Galaxy smartphones was lower than hoped during the holiday season, but the flagship models still outperformed market forecasts.

In terms of 2023, Samsung says its economic downturn is likely to persist for awhile, However, smartphone purchasing patterns suggest a continued polarization between premium and low-priced phones.

Samsung forecasts the following year will be difficult, with the more affordable models being the most affected. To counter this, the corporation intends to provide competitive offers via carriers and broaden its reach among those new to 5G technology.