Strong Galaxy S24 sales help surging Samsung profits in Q2 2024
Demand for Samsung smartphones declined in Q2 2024, the company revealed in its latest financial report. However, the Galaxy S24 series continued to see strong sales between April and June, achieving a double-digit growth YoY both in shipments and revenue (for Q2 and H1), compared with the Galaxy S23 lineup.
The full financial results showed a massive 1,458% increase in operating profit on a yearly basis due to surging demand for AI memory chips.
| (all units in KRW / USD) | Q2 2024 | Q1 2024 | QoQ Change | Q2 2023 | YoY Change |
| Mobile eXperience Sales | 27.38 trillion / 19.95 billion | 33.53 trillion / 24.42 billion | -18.3% | 25.55 trillion / 18.61 billion | 7.1% |
| Mobile eXperience Operating Profit | 2.23 trillion / 1.62 billion | 3.51 trillion / 2.55 billion | -36.3% | 3.04 trillion / 2.21 billion | -26.6% |
| Total sales | 74.07 trillion / 53.96 billion | 71.92 trillion / 52.39 billion | 3% | 60.01 trillion / 43.72 billion | 23.4% |
| Total profit | 10.44 trillion / 7.60 billion | 6.61 trillion / 4.81 billion | 58% | 0.67 trillion / 0.48 billion | 1,458% |
Samsung said the quarter is seasonally weak, particularly in the premium segment, and that's why it recorded a decline in sales. The Galaxy S24 flagships managed to save the day, and despite a quarterly decline in sales and profit, the yearly sales results of the Mobile Experience division were up 8%.
Expectations for the second half of 2024 are that the premium segment will grow, but the mass segment will decline. Samsung predicts growth in ecosystem products, including tablets, watches and TWS. This means we are likely to see an increase in sales of Galaxy Tab S10, Galaxy Watch6 and Buds3 devices.
The company also promised Galaxy AI in tablets, starting with the Tab S9 series, which is the experience driving forward Samsung's sales in the premium segment.
Looking at the bigger picture, the expansion of AI investments resulted in robust demand for HBM, conventional DRAM and SSD. Expectations for the rest of 2024 are that demand for server AI will stay strong across all products, with ramped-up HBM and server DRAM production.