Strong Galaxy S24 Sales Result in Samsung’s Profit Surging Again

According to Samsung’s latest quarterly report, people bought fewer of its phones in the past three months. However, the new Galaxy S24 phones sold well, with sales and revenue growing by more than 10% compared to the previous model.

Samsung made a huge profit this quarter, showing an improvement of an impressive 1,458% mostly because of strong sales of computer memory chips used for artificial intelligence (AI). Here are how the results compare to previous periods.

Samsung says that phone sales are usually slower in the middle of the year, especially for high-end phones. But the Galaxy S24 did well, helping the company’s overall phone business grow by 8% compared to last year.

Samsung expects to sell more expensive phones in the second half of the year, but sales of cheaper phones might go down. The company also thinks people will buy more tablets, smartwatches, and wireless earbuds.

Samsung is bringing AI to its tablets, starting with the new Galaxy Tab S9 series. This is a big part of the company’s plan to sell more high-end devices. The Galaxy AI, originally introduced with the Galaxy S24 series has also been rolling out to older Samsung flagships including foldables. The new Galaxy Z Fold 6 and Z Flip 6 got the same treatment as soon as they launched earlier this month.

Samsung’s increased spending on AI technology has led to higher demand for its memory chips, including HBM, conventional DRAM, and SSD. The company expects to continue selling a lot of these chips for use in computers and servers throughout the rest of the year.