- Samsung reports its best quarterly profit since 2018, with a staggering 932.8% increase in operating profit for Q1 compared to last year.
- Strong sales of Galaxy S24 smartphones and robust demand for memory chips contribute to Samsung's remarkable turnaround.
- Despite challenges, including a 44% profit decline in smartphone sales, Samsung's focus on innovation and AI-driven growth signals optimism for the future.
In an unexpected turnaround, Samsung Q1 revenue has revealed the best profit quarter since 2018 with a breathtaking 932.8 % increase in operating profit for the first quarter, compared to the same quarter last year.
Though the tech company encountered several difficulties in 2023 involving a drop in demand after the Covid-19 period, it has reacted promptly, with its memory chip business making positive gains and its smartphone sales still going strong. Let’s discuss further.
Samsung Q1 Revenue Takes Remarkable Turnaround
In the first three months of 2024, Samsung recorded 71.92 trillion KRW ($52.3 billion) in sales which corresponds to a 12.81% year-on-year rise. The number of 36.3% exceeded the initial estimates and then Samsung became the world leader in the production of memory chips.
In the third quarter, there was a 6.61 trillion won in operating revenue ($4.8 billion) that eclipsed expectations as well as showing the ability to keep strong of the company. The increase in the net profit was also so encouraging as it rose by 9.4 percent to 6.75 trillion Korean won which is equivalent to $4.9 billion.
Samsung has attributed its success to a few critical factors. The fact that the AI features were incorporated into the Galaxy S24 flagships proved to be a crucial driver generating high sales and good user experience.
Samsung managed to witness revenue growth in the smartphone sector albeit with a higher cost of components, and it is all attributable to the increased demand for foldable phones and consumer satisfaction.
Nevertheless, not all the parts witnessed the same degree of prosperity. Samsung Display’s performance deteriorated in the first quarter of the year as a result of low seasonality and intense competition.
Despite this, the company is confident of moderate growth potential in the market along with an increasing OLED technology penetration rate. Lowering the production cost of OLED screens is a recent attempt that would make Samsung more dominant in the smartphone display market.
Along the way, Samsung Foundry also recorded improved losses and a record order backlog in Q1. By announcing its plans for 2nm process node development as well as the mass production of chips based on its second Generation 3nm node, the company has demonstrated its commitment to innovation and competitiveness. AI is now seen as an important growth driver, and the Samsung semiconductor unit justifying its readiness for further growth and improvement in the coming year.
The unit that sold 5% more smartphones had a 44% downfall in profits due to the complicated nature of markets. On the other hand, the memory chip industry has gone through a phenomenal rebound, starting from quarters of continuous loss to making profits in Q1 2024.
Related
According to the company’s statement released today, Samsung attributes its strong performance to the outstanding sales of flagship Galaxy S24 smartphones and the higher prices of memory semiconductors. The upbeat quarterly report helped to push up the company’s share price by 1,200 won on Tuesday suggesting that investors are confident and optimistic about the prospects of Samsung.
Samsung’s outstanding first-quarter performance shows its strength, creativity, and adeptness in overcoming difficulties in the market. Through the development of tech innovation and the provision of the latest products, Samsung goes on doing its best and being known as a global tech leader.
