DEEP RESEARCH · TELECOM EQUIPMENT
[Telecom Equipment] Samsung Electronics Q4 2024 Earnings Material: Network Business
Reviewing the potential 2025 network and telecom-equipment turnaround through Samsung's business-unit trends
0. Bottom line first
Samsung Electronics' overall business conditions did not sound good, but if revenue scale is set aside and each business unit is viewed by direction, the Network business appears to have relatively better growth potential. That is why the author organized this note around the 2025 telecom-equipment turnaround and the network value chain.
Official fact: The original post cites Samsung Electronics' earnings release page: Samsung Electronics earnings releases
1. Samsung's business-unit structure and where Network fits
Samsung Electronics is organized around major businesses including Semiconductors (DS), Mobile and Network (MX/NW), Display (SDC), TV and Appliances (VD/DA), and Automotive Electronics (Harman). The author focuses especially on the Network (NW) business.
Official fact: The Network business is described as building 5G and 6G network infrastructure and developing virtualized RAN (vRAN) and open network (ORAN) solutions. The listed customers include Korea's three telecom operators, Verizon in North America, and NTT DoCoMo in Japan.
Interpretation: Since the 2025 outlook mentions higher overseas orders, expansion of 5G and 6G network buildouts, and broader adoption of vRAN and ORAN technologies, the author is looking for signs of a telecom-equipment rebound in the Network business.
2. Q4 2024 trends and 2025 outlook by business
| Business | Q4 2024 result (YOY) | 2025 outlook (YOY expectation) |
|---|---|---|
| Network (NW) | Revenue up, operating profit up | Higher overseas orders, stronger 6G R&D |
| Mobile (MX) | Revenue slightly up, operating profit down | AI smartphone expansion, foldable and XR growth |
| Display (SDC) | Revenue down, operating profit down | Automotive and IT panel expansion, smartphone panel weakness |
| Semiconductors (DS - memory) | Revenue surged, operating profit rebounded | Continued DDR5 and HBM growth |
| TV and Appliances (VD/DA) | Revenue slightly up, operating profit down | AI appliance and premium product expansion |
| Automotive (Harman) | Revenue slightly up, operating profit up | Growth in audio and automotive electronics sales |
Network · DS memory
For Network, the key points are overseas orders, vRAN/ORAN, and 6G R&D. For DS memory, the key is DDR5 and HBM demand.
MX · VD/DA · Harman
AI smartphones, AI appliances, and automotive customer expansion are positive, but profitability pressure or tougher competition is also mentioned.
Display
Lower smartphone OLED panel demand and tougher competition are headwinds, while automotive OLED and IT panels are partial recovery factors.
3. Network (NW): the axis the author watches most
Official fact: The Network business was summarized as having higher revenue and higher operating profit in Q4 2024. The reasons cited were increased supply of network equipment in Korea, North America, and Japan, plus existing 5G network upgrades and broader new vRAN/ORAN adoption.
Interpretation: The author views profitability improvement from overseas revenue growth and cost savings from AI-based network optimization as positive. For 2025, the key points are additional orders from major carriers in North America and Japan, higher 6G R&D investment, broader 5G vRAN/ORAN adoption, and more high-value solution sales as virtualized networks expand.
4. Other business-unit observations
Mobile (MX): Neutral
- Q4 2024: Revenue increased slightly as flagship Galaxy S24 series sales rose.
- Headwinds: Operating profit declined due to slower low-to-mid-end smartphone sales and higher cost burden.
- 2025: Stronger AI features in Galaxy S25, foldable lineup expansion, and higher XR and wearable device sales are positive factors.
- Risk: Competition with Chinese vendors is expected to intensify in low-to-mid-end smartphones.
Display (SDC): Weak
- Q4 2024: Revenue declined due to lower smartphone OLED panel demand and lower large-display revenue after LCD panel production ended.
- Profitability: Operating profit declined due to lower panel prices and weaker demand.
- 2025: Automotive OLED and IT panel growth are partial recovery factors.
- Risk: Price competition with Chinese OLED panel makers is expected to intensify.
Semiconductors (DS - memory): Very positive
- Q4 2024: DDR5 and HBM sales increased on surging AI server and data-center demand, while NAND flash (QLC SSD) revenue also expanded.
- Profitability: Operating profit rebounded as semiconductor prices rose.
- 2025: Continued HBM and DDR5 demand growth is expected from AI and cloud expansion, with NAND price recovery expected from increased QLC SSD adoption.
TV and Appliances (VD/DA): Neutral
- Q4 2024: Revenue increased slightly on higher premium TV and AI appliance sales.
- Headwinds: Operating profit declined due to higher costs and marketing expenses.
- 2025: Sales growth is expected for TVs with Vision AI and BESPOKE AI appliances.
Automotive (Harman): Solid
- Q4 2024: Revenue increased slightly as automotive electronics, especially car audio, demand expanded.
- Profitability: Operating profit increased due to stronger sales of high-margin premium audio products.
- 2025: Automotive customer expansion and stable growth are expected as EV and autonomous-vehicle markets expand.
5. Investment idea summary
Interpretation: The businesses the author views most positively for 2025 are Network (NW) and Semiconductors (DS - memory). For Network, the keys are higher overseas orders, vRAN/ORAN expansion, and stronger 6G R&D. For DS memory, the key is continued DDR5 and HBM growth driven by AI and data-center demand.
- Network (NW): Higher overseas orders, vRAN/ORAN expansion, stronger 6G R&D.
- Semiconductors (DS - memory): Continued DDR5 and HBM market growth on AI and data-center demand.
- Mobile (MX): AI smartphone growth, but intensifying low-to-mid-end competition.
- TV and Appliances (VD/DA): AI appliance growth expected, but cost burden remains.
- Automotive (Harman): Continued growth in car audio and automotive electronics solutions.
- Display (SDC): Smartphone panel competition intensifies, with partial recovery possible from IT and automotive OLED.
Official fact: The original post also links to a telecom-equipment report review: telecom-equipment report review
Sources
- Original post: Naver Blog original
- Samsung Electronics earnings releases: https://www.samsung.com/sec/ir/financial-information/earnings-release/
- Telecom-equipment report review: https://m.blog.naver.com/star_of_self/223736992287