The 933 operating profit increase posted by Samsung in Q1 2024 was nothing compared to the success the Korean giant garnered in its latest Q2 2024 quarter. The company posted a 15-fold increase in net earnings, with various business segments displaying incredible growth during this period. Here, we take a look at which areas Samsung has improved upon and where it is expected to be cautious.
Semiconductor prices rebounded thanks to the AI boom, causing Samsung to post impressive results
On Samsung’s newsroom page, the following information is stated concerning the overall revenue and operating profit generated during the Q2 2024 period. For those who are not interested in performing currency conversions themselves, the firm earned approximately $7.52 billion this quarter, compared to $502.5 million a year ago.
“The Company posted KRW 74.07 trillion in consolidated revenue and operating profit of KRW 10.44 trillion as favorable memory market conditions drove higher average sales price (ASP), while robust sales of OLED panels also contributed to the results.”
Thanks to the AI boom, semiconductor prices rebounded, and Samsung took full advantage of this rise. Additionally, smartphone and TV shipments increased compared to last year, contributing to the 15-fold operating profit increase. Semiconductors generated the bulk of that profit, bringing in 6.45 trillion won, or 61.8 percent of the total, making it the highest since the second quarter of 2022.
Demand for faster DRAM and HBM chips used in AI applications has skyrocketed, along with the use of chips in data centers. Samsung is also on track to supply NVIDIA with HBM3E memory chipsets after reportedly passing the qualification tests, though it was previously stated that the company failed the validation stage. Even though smartphone shipments dropped in the second quarter by about 810 million won, shipments were steady at 54 million units.
Samsung also retained its position as the world’s biggest smartphone market for this period, beating Apple and attaining an 18 percent market share. Fortunately, this slump is not expected to last for long, as Samsung states that overall smartphone shipments in the second half of 2024 will increase due to AI functionality being integrated into these devices and getting extended to smartwatches. Samsung did not provide a future outlook for its financials, so we must wait and see how it performed in the third quarter.
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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