Fortune is favoring Samsung for the second quarter in a row. Just like its Q1 2024 earnings, where the company netted an incredibly impressive 933 percent operating profit growth compared to Q1 2023, the Korean giant expects to witness a similar outcome, but this time, the rewards are expected to be much higher. In its Q2 2024 guidance, the company predicts a 15-fold rise in operating profit, as rebounding semiconductor prices driven by the AI boom have helped turn around Samsung’s financial outlook.
Samsung predicts that its operating profit for Q2 2024 will reach $7.54 billion
2023 was tough for Samsung, as the continuous decline in chip demand forced a slower growth on the company’s financials. Technology companies have now turned their attention to the growing trend of artificial intelligence, and with their chip requirements shooting through the roof, Samsung stands to benefit from this spike in demand. The Korean titan has announced that its operating profit should be in the 10.3 trillion to 10.5 trillion won range, which is approximately $7.54 billion.
During the same period a year ago, Samsung posted an operating profit of just 670 billion won, or approximately $509.2 million. In Q1 2024, we reported that the Galaxy S24 family accounted for 53 percent of Samsung’s total net earnings, but that might have been due to the three flagships recently launching in a multitude of regions. With the current-generation smartphone family now several weeks old, it remains to be seen if consumers have displayed the same propensity of upgrading to the newer models as they did when Samsung first announced them.
As for revenue, Samsung says that it likely increased 23 percent in the second quarter to 74 trillion won, but we will have a closer look at the earnings call on July 31. The company expects to announce its newest foldable flagships in a few days, but their sales will likely not reflect in the upcoming quarter’s earnings.
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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