The Consumer Electronics Division of Samsung Electronics, including the Visual Display and Digital Appliances businesses, recorded KRW 12.72 trillion in consolidated revenue and KRW 0.51 trillion in operating profit for the fourth quarter.
The Digital Appliances Business in the fourth quarter saw moderate YoY gains due to continued growth in North America and economic recoveries in Europe and CIS. The business’s revenue grew YoY thanks to strong sales of premium products, including the FlexWash washing machine and the Flex Duo with Dual Door oven, in advanced markets.
Looking ahead, in 2018, Samsung will focus on new growth by strengthening its B2B business and expanding distribution channels including on-line ones. In the first quarter, the company will expand its premium lineup—with products such as the new Family Hub refrigerator and washing machines with QuickDrive technology—and reinforce global marketing activities.
According to the company, In the fourth quarter, the global TV market grew by double-digits QoQ thanks to the year-end holiday season, but the market declined YoY due to lower demand in North America, China, and the Middle East. Under these circumstances, earnings slightly declined YoY due to the company scaling back on its mid-range to low-end product lineup and lower product prices from intensified competition. However, earnings improved QoQ thanks to solid sales of premium products during the year-end peak season.
As for the TV market in 2018, demand for ultra-large screen and premium TVs is expected to grow led by major sporting events. As the premium market continues to expand, the company will aim to strengthen its new lineup, including ultra-large screen QLED TVs as well as 8K TVs, and bolster marketing activities.
