Samsung Q1 2024 profits rise 10x on strong chip sales

Samsung reported earnings for the first quarter of 2024, which ended March 31, 2024, in which the company posted consolidated revenue of 71.92 trillion won (approx. $52.07 billion), up 13% more year-on-year and 6% more quarter-on-quarter.

Earned an operating profit of 6.61 trillion won ($4.78 billion), up 932.81% year-on-year, as the Memory Business returned to profitability by addressing demand for high-value-added products such as HBM, DDR5 , server SSD and UFS 4.0 on servers. storage, PC and mobile, along with increasing ASP.

Samsung MX (Mobile eXperience) in the first quarter of 2024

The MX and Networks businesses recorded 33.53 trillion won in consolidated revenue, up 5% year-on-year. The division had an operating profit of 3.51 trillion won, down 10.91% year-on-year and up 28.57%.

The smartphone market entered the seasonally lowest 1Q, leading the premium and mass segments to decline sequentially in both volume and value.

However, MX Business achieved revenue and operating profit growth due to strong sales of the Galaxy S24 series and maintained solid double-digit profitability thanks to continued efforts in resource optimization.

Overall, MX delivered revenue growth and maintained solid double-digit profitability despite pressure from rising component prices.

Samsung MX Expectations for the second quarter of 2024

In the second quarter, global smartphone demand is expected to decline sequentially due to seasonality. Accordingly, MX Business expects smartphone shipments to decline and tablet shipments to remain consistent sequentially.

The MX Business will maintain its flagship-oriented sales approach in the second quarter by applying the artificial intelligence experience of the Galaxy S24 to other flagship models and maximizing product competitiveness.

In addition, the MX Business will aim to ensure solid profitability by continuing to streamline operations in light of continued geopolitical instability and likely increases in the cost of key components. At the same time, the MX Business will remain committed to investing in R&D, including AI, despite a challenging environment.

In the second half of the year, the smartphone market is expected the rebound due to the stabilization of consumer sentiment, the expansion of AI products and services, and economic growth in emerging markets.