Samsung has released its latest financial report today, covering the first quarter of 2024 and it shows a stark recovery from many of the previous quarters. The South Korean phone maker has managed to increase its profit 10 times over compared to Q1, 2023. It now stands at an impressive KRW6.61 trillion ($4.85 billion).
Not just profit, but the company’s revenue has made a 13% jump as well. Although it is not as impressive as a 10x increase in profit, it still fairly surpasses expectations. The report attributes this return to revenue and profit levels seen in 2022 primarily to robust sales of its flagship Galaxy S24 smartphones and increased prices for memory semiconductors.
Samsung’s Mobile Experience (MX) division reported revenue growth despite a downturn in the market. As anticipated, the demand for premium and mid-range smartphones dipped due to seasonal trends. However, the Galaxy S24 models delivered strong double-digit profitability, thanks to ongoing efforts in resource optimization, according to the company.
The official press release highlighted that Galaxy AI features like Circle to Search continue to be highly used, boosting sales.
Looking ahead, for the second quarter, Samsung anticipates a sequential drop in overall demand. Nevertheless, the MX division plans to maintain its focus on flagship models. It aims to enhance product competitiveness by extending the AI features of the Galaxy S24 to other high-end devices since the demand for generative AI remains strong.
Samsung’s other divisions including its DDR5 RAM and high-density SSD memory performed well too, bringing the memory division back on track. The company expects this positive trend to persist into the second quarter of the year, despite ongoing volatility due to broader economic conditions and geopolitical challenges.
