Samsung gets back on track with tenfold increase in profit for Q1 2024
Samsung posted its detailed financial results today for the first quarter of 2024, and we can see the company is back on track. The Korean giant reported an operating profit of KRW6.61 trillion ($4.85 billion), which is a tenfold increase from the same period last year.
A major reason why profit is back to 2022 levels is the strong sales of flagship Galaxy S24 phones and higher prices for memory semiconductors, the report stated. Overall revenue also rose 13%, fairly more than expected.
Mobile Experience (MX) business saw revenue growth amid market decline. Demand for premium and mid-range smartphones decreased as expected due to seasonality, but the Galaxy S24 phones brought a “solid double-digit profitability through continued efforts in resource optimization”.
Galaxy AI features such as Circle to Search continued to see high usage rates and contributed to sales growth, according to the official press release.
Expectations for the second quarter are that overall demand will decline sequentially. The MX division will keep its flagship-oriented sales approach in Q2 by applying Galaxy S24"s AI experience to other flagship models to maximize product competitiveness.
Demand for generative AI showed solid trends, and demand for DDR5 and high-density SSDs remained strong, bringing the whole memory business back to profit. The trend is expected to continue in the year"s second quarter despite “continued volatility relating to macroeconomic trends and geopolitical issues”, states Samsung.
