Samsung’s Q1 2024 profits surge 10X on strong chip sales

Samsung has reported its earnings for Q1 2024 that ended March 31, 2024 in which the company posted 71.92 trillion won (USD 52.07 billion approx.) consolidated revenue, up 13% YoY, and up 6% QoQ.

It made an operating profit of 6.61 trillion won (USD 4.78 billion), up 932.81% YoY, as the Memory Business returned to profit by addressing demand for high value-added products such as HBM, DDR5, server SSDs and UFS 4.0 across servers, storage, PC and mobile, along with the increase in ASP.

Samsung MX (Mobile eXperience) in Q1 2024

The MX and Networks businesses posted 33.53 trillion won in consolidated revenue, up 5% YoY.  The division posted 3.51 trillion won in operating profit, down 10.91% YoY and up 28.57% QoQ.

The smartphone market entered the seasonally lower 1Q, leading the premium and mass segments to decrease sequentially in both volume and value.

However, the MX Business achieved revenue and operating profit growth due to strong sales of the Galaxy S24 series and maintained solid double-digit profitability through continued efforts in resource optimization.

Overall, MX achieved revenue growth and maintained solid double-digit profitability despite pressure from rising component prices.

Samsung MX Q2 2024 expectations

In the second quarter, overall demand for smartphones is expected to decline sequentially due to seasonality. Accordingly, the MX Business expects smartphone shipments to decline and tablet shipments to remain consistent sequentially.

The MX Business will maintain its flagship-oriented sales approach in the second quarter by applying the Galaxy S24’s AI experience to other flagship models and maximizing product competitiveness.

Additionally, the MX Business will aim to secure solid profitability by continuing to streamline operations in light of continued geopolitical instability and likely increases in the cost of key components. At the same time, the MX Business will remain committed to investing in R&D, including in AI, despite a challenging environment.

In the second half of the year, the smartphone market is expected to rebound due to stabilizing consumer sentiment, the expansion of AI products and services and economic growth in emerging markets.

Author: Srivatsan Sridhar

Srivatsan Sridhar is a Mobile Technology Enthusiast who is passionate about Mobile phones and Mobile apps. He uses the phones he reviews as his main phone. You can follow him on Twitter and Instagram