Samsung announced its financial results for the fourth quarter and fiscal year of 2022, reporting KRW 302.23 trillion (about $244 billion) in revenue, a record high for the company. There was an increase of 8% from 2021 but a decrease of 15% in operating profit to KRW 43.38 trillion.

The fourth quarter was a disappointment for the Korean firm, which saw a drop in sales across the board as a result of the global economic recession and low consumer demand.

While Q4 revenues were down 9% year over year for the Mobile Experience (MX) division, year sales were up 10%. Despite this, profits were down for the year as a whole, the fourth quarter, and the year. As a result of “inflation and geopolitical instability,” Samsung says the mass market shrank dramatically.

Even if the holiday quarter was a disappointment for Galaxy smartphone sales, flagships nevertheless managed to outperform industry forecasts. As for Q1 2023, Samsung predicts a continuation of the declining trend, with things only scooping up after the release of the Galaxy S23. The new flagships, which are expected to launch tomorrow, will include “improved camera and gaming features.”

Samsung expects the following year to be just as challenging. The company plans to counter the blow by offering competitive deals through carriers, focusing on growth among first-time 5G customers and other areas where mass-market models are most vulnerable.