Samsung Electronics Boasts Massive 933% Boost In Operating Profits For Q1 2024

2024 is proving to be a great start for South Korean tech giant Samsung who just displayed a massive 933% rise to its operating profits.

The results displayed pertain to Q1 of this year and the company admitted how the figures beat out any expectations it had for itself during this period.

The organization generated a revenue of $52.3 billion while operating profits stood at a staggering value of 6.6 trillion Korean won. Moreover, the tech giant’s quarterly revenue at the end of March jumped 12% from one year back while its operating profits rose a massive 933% during that same period.

The fact that Samsung overtook Apple as the leading smartphone in the market was another major high and these quarterly results for its earnings are certainly being welcomed with open arms too as the company braces for a very eventful rest of the year.

The figures were certainly aligned with the firm’s guidance that was produced in April where it was said that operating profits would experience a significant boost for Q1 than what was witnessed one year back.

The news is certainly a huge moment of celebration for the company because it has been going through a massive period of losses in the previous year as it recovered from the post-pandemic phase where electronics stood at a massive slump in terms of user demand and purchasing power.

The firm is making the most of its revenue with enhanced sales of its leading flagship devices including the latest range of Galaxy S24 while the costs of semiconductors for memory purposes are also at an all-time high.

So many value-added services are similarly witnessing greater demands as we speak as revealed by the company on Tuesday.

Many experts feel there is a major advantage for the firm’s NAND flash memory thanks to the growing rise in demand for AI computation. The company has spoken about how strongly it views HDD storage to be the next best thing in terms of AI computing and that’s true when we talk about AI training. Therefore, Samsung Electronics is deemed to be a leading beneficiary for SSD when it comes to AI training.

Today, the organization is one of the biggest in terms of random access chips used for memory or DRAM that can be enlisted inside a host of top electronic products like PCs and smartphones.

The company hopes to see more success in Quarter Two of 2024 as the demand is on the rise for AI and the market for its phones in terms of consumer demand also seems to be showing positive results.

But the growth in PCs isn’t as promising so it does envision a slower start in that sector. So that might also see suppliers making changes to inventories for the year 2024 soon.

Samsung just rolled out a new statement of warning during its recent earnings call about how instability is on the rise due to the rise in costs of various components including those linked to memory design.

For the second quarter, profitability would be massively low when compared to that witnessed in the first and third quarters of this year. This is when the firm hopes to roll out more flagship products in 2024. As a result, they are more focused on bettering costs and bringing them down to a minimum in various domains like processing to attain the highest rates for profits.

Image: DIW-Aigen

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