Samsung just revealed its earnings forecast for the first quarter of 2024, projecting sales to fall in the range of $51-$53 billion. What stands out even more is the anticipated operating profit, expected to lie just below $5 billion, which represents a remarkable tenfold increase from the profit reported in the corresponding quarter of the previous year.
According to Reuters, the substantial surge in profits is likely attributed to a heightened demand for high-bandwidth memory (HBM) essential for AI chipsets. An analyst in conversation with the news agency also mentioned the possibility of an improved inventory valuation for NAND chips, which could positively impact margins.
Additionally, the preliminary market reception to the Galaxy S24’s on-device AI capabilities, though details are yet to be fully disclosed, suggests that the enhanced sales figures for these flagship devices may have also contributed to the profit increase.
The earnings guidance represents Samsung’s conclusive forecast submitted to Korean regulatory bodies and authorities. The comprehensive report is scheduled for release on the final Thursday of this month, at which point a detailed analysis of profit and sales, segmented by division, will be made available.
