Samsung has revealed its monetary outcomes for the primary quarter of this yr, a couple of weeks after revealing income estimates. The corporate revealed that its income rose 13% in comparison with Q1 2023, whereas its revenue skyrocketed almost 10x (933%) in comparison with the yr earlier.
Samsung’s revenue jumps almost 10x in Q1 2024, because of robust reminiscence and smartphone gross sales
In Q1 2024, Samsung’s income was KRW 71.92 trillion ($52.08 billion), whereas the working revenue was KRW 6.61 trillion ($4.78 billion). That is 13% extra income and 933% larger revenue in comparison with figures from Q1 2023. This huge rise in revenue is because of larger reminiscence chip and smartphone gross sales. Its semiconductor reminiscence chip enterprise returned to revenue after almost a yr of losses, because of an increase in reminiscence chip costs. The corporate’s dwelling home equipment, smartphone, and TV divisions additionally posted larger earnings in the course of the quarter.
Smartphones
The corporate’s smartphone division (Samsung MX) generated income of KRW 33.53 trillion ($24.27 billion) and an working revenue of KRW 3.51 trillion ($2.54 billion). Whereas the market demand for mid-range and high-end telephones decreased, Samsung improved its income and revenue resulting from spectacular gross sales of the Galaxy S24. The corporate says it maintained “stable double-digit profitability” resulting from useful resource optimization.
Samsung expects smartphone and pill gross sales to say no in Q2 2024. Nevertheless, gross sales are anticipated to extend within the second half of this yr as client sentiment might enhance, particularly in rising markets. Samsung MX goals to ship extra telephones yearly than it did in 2023.
The corporate plans to enhance wearable gross sales by new fashions and kind elements (just like the Galaxy Ring) and confirms plans to launch premium smartwatches.
Semiconductor Chips
The Samsung Gadget Options division, which oversees the design and manufacturing of semiconductor chips, posted a income of KRW 23.14 trillion ($16.75 billion) and an working revenue of KRW 1.91 trillion ($1.38 billion). Due to the continued AI increase, gross sales of DDR5 reminiscence, HBM reminiscence, and server SSDs elevated, whereas gross sales of UFS 4.0 storage chips elevated largely resulting from larger demand from Chinese language smartphone manufacturers. Samsung says that the reminiscence enterprise will stay robust all through Q2 2024.
The System LSI enterprise, which designs digital camera sensors, smartphone processors, and different parts, noticed elevated gross sales. Nevertheless, enhancements in earnings have taken longer than anticipated as Show Driver Built-in Chips (DDI) gross sales have slowed resulting from sluggish panel demand. Samsung additionally introduced its plans to launch a brand new wearable processor based mostly on superior applied sciences.
Samsung Foundry, the corporate’s division that manufactures semiconductor chips, hasn’t seen an enchancment in gross sales. Nevertheless, the corporate is constantly enhancing its applied sciences. Its 4nm course of node lastly has secure yields, whereas the event of 2nm and 3nm processes is claimed to be shifting forward easily. Apparently, Samsung Foundry has seen its highest-ever order backlog within the first quarter. It plans to begin the mass manufacturing of second-generation 3nm chips within the second quarter, probably for the next-generation Exynos chips that shall be used within the Galaxy S25.
Residence Home equipment & TVs
The corporate’s dwelling home equipment and TV divisions posted income of KRW 13.48 trillion ($9.75 billion). Their working revenue reached KRW 0.53 trillion ($383 million) in the course of the first quarter. The TV enterprise posted larger income in comparison with This fall 2023 regardless of weak TV gross sales globally, because of larger gross sales of premium fashions (Neo QLED TV, OLED TVs, and 75-inch or larger TVs).
Demand for TVs is predicted to stay weak within the second quarter, however gross sales are estimated to enhance within the second half of the yr.
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