Samsung had mentioned in a preliminary statement that it expected its operating profit to increase by 931 percent in the next financial year compared to the previous one, as the Korean giant had confidence that it could put a stop to its losing streak. Sure enough, in the latest Q1 2024 report, the company posted a jaw-dropping 933 percent increase in operating profit compared to Q1 2023, with several business divisions showing incredible growth in just a 12-month period.
Samsung’s Q1 2024 revenue was just 17 percent higher compared to Q1 2023; smartphone’s operating profit made up the majority of earnings
In its latest financial report, Samsung states that it generated a revenue of 71.92 trillion South Korean won, or $52.08 billion in revenue, marking a 17 percent increase compared to the same period a year ago. While it is a nominal increase, the most astonishing figure is the 933 percent operating profit, with various business divisions contributing to this increase. Coming to Samsung’s smartphone segment, this arm generated a revenue of 33.53 trillion South Korean won, or $24.27 billion, with an operating profit of $2.54 billion.
Samsung did not have much luck with its mid-range smartphones, but its Galaxy S24 series proved to be the driving force behind these earnings. The company states that it maintained double-digit profitability due to resource optimization, which, in other words, means that Samsung lowered its chipset costs by choosing to launch its latest flagship lineup in Exynos 2400 and Snapdragon 8 Gen 3 variants.
With the Snapdragon 8 Gen 4 expected to be more expensive than the Snapdragon 8 Gen 3, Samsung likely intends to reduce its chipset bill by introducing the Exynos 2500 next year for the Galaxy S25 family. For the second quarter, Samsung believes that its earnings will be affected due to several factors, and it plans to shift its focus toward cost competitiveness. As reported by CNBC, the company stated the following:
“Profitability in Q2 is expected to be down slightly compared to Q1 and Q3, which is when we released new flagship products this year. In response, we’re focusing on cost competitiveness throughout the R&D, manufacturing and sales processes to achieve solid profitability.”
The Korean technology titan also witnessed growth in its semiconductor business, with a solid revenue of 23.14 trillion South Korean won, or $16.75 billion, and an operating profit of 1.91 trillion South Korean won, or $1.38 billion. With the ongoing AI boom, demand for DDR5 memory, HBM memory, server SSDs, and UFS 4.0 storage chips has increased substantially. If you want to check out Samsung’s entire Q1 2024 earnings report, click the link below.
News Source: Samsung
About the author: Omar Sohail is a reporter and analyst for Wccftech's mobile section, specializing in the technology and business of the mobile industry. His expertise lies in the intricate hardware supply chain, covering developments in semiconductor manufacturing, chip lithography, and camera sensor technology.
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