Danish Kapoor
Danish Kapoor

Samsung expects 10-fold increase in operating profit

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Samsung shared its earnings expectations for the first quarter of 2024 with the public. The company estimates that sales revenues were between 51 and 53 billion dollars during this period.

However, the most striking part of the company's report is the expected jump in operating profit. The South Korean technology giant expects operating profit to be just under $5 billion. This means a 10-fold increase in profits compared to the same period last year.

The most important factor in the increase in operating profit is the increase in demand for high bandwidth memories used in artificial intelligence chips. An analyst speaking to Reuters stated that the inventory value of NAND chips has also increased, which affects margins.

Samsung also benefited from the Galaxy S24 series

With Samsung's Galaxy S24 series, it focused on the on-device artificial intelligence experience. This seems to have helped the company increase its profits. The increase in sales of flagship phones is naturally reflected in profitability.

Samsung's final financial report for the first quarter of 2024 will be published on April 25.

Danish Kapoor