Samsung, which announced its revenue forecasts a while ago, has now announced its financial report for the first quarter of 2024. While the company increased its revenue by 13 percent compared to the first quarter of 2023, it also managed to increase its profit by 933 percent, or almost 10 times, compared to the previous year.
The company's smartphone unit completed the first quarter of the year with revenue of 33.53 trillion won (785.91 billion TL) and operating profit of 3.51 trillion won (113.66 billion TL). While market demand for mid-range and high-end phones is decreasing; Samsung increased its revenue and profits thanks to impressive sales of the Galaxy S24. The company said it maintained “solid double-digit profitability” due to resource optimization.
The company expects smartphone and tablet sales to decline in the second quarter of 2024. However, sales are expected to increase in the second half of this year due to improving consumer confidence, especially in emerging markets. The South Korean technology giant aims to ship more phones throughout the year compared to 2023.
The company plans to increase wearable device sales through new models and form factors (like the Galaxy Ring), and has also confirmed plans to launch premium smartwatches.
The Device Solutions division, which carries out the design and production of semiconductor chips, announced revenue of 23.14 trillion won (542.39 billion TL) and operating profit of 1.91 trillion won (44.69 billion TL). While sales of DDR5 memory, HBM memory, and server SSDs have increased thanks to the ongoing AI boom, sales of UFS 4.0 storage chips have also increased, largely due to high demand from Chinese smartphone brands. The company expects this performance on the memory side to continue throughout the second quarter of 2024.
The System LSI business, which designs camera sensors, smartphone processors and other components, saw sales increase. However, the recovery in earnings took longer than expected due to slowing Display Driver Integrated Chip (DDI) sales due to slowing panel demand. Samsung also announced that it plans to launch a new wearable processor based on advanced technologies.
There is no increase in Samsung chip sales
Samsung Foundry, the company's division that produces semiconductor chips, saw no improvement in sales. But the company is constantly improving its technologies. While the 4nm design has finally reached stable yield, the development of the 2nm and 3nm processes is claimed to be progressing smoothly. Apparently, Samsung Foundry saw its highest order backlog ever in the first quarter. It plans to start mass production of second-generation 3nm chips in the second quarter, most likely for the next-generation Exynos chips that will be used in the Galaxy S25.
Samsung's home appliances and TV divisions generated revenue of 13.48 trillion won (315.72 billion TL). Operating profits amounted to 0.53 trillion won (12.4 billion TL). The TV business posted higher profits compared to the fourth quarter of 2023, thanks to increased premium model sales, despite weak TV sales worldwide. Demand for TVs is expected to remain weak in the second quarter, but sales are predicted to increase in the second half of the year.
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