Samsung had a profitable first quarter of 2024. The corporate generated a consolidated gross sales income of KRW 71.92 trillion (roughly $52.08 billion) within the first three months of the 12 months. Its working revenue was KRW 6.61 trillion (~$4.78 billion), a whopping 933% improve from the identical interval final 12 months. Semiconductor and smartphone companies contributed probably the most to its revenue in Q1 2024.
Samsung sees a 933% revenue improve within the first quarter of 2024
A world decline in semiconductor costs led to a pointy lower in Samsung’s revenue final 12 months. The corporate took residence KRW 0.64 trillion, KRW 0.67 trillion, KRW 2.43 trillion, and KRW 2.82 trillion within the 4 quarters, respectively. Its whole annual revenue of KRW 6.57 trillion was a staggering 85% lower than what it made in 2022. The agency registered its first loss from the chip enterprise in 14 years.
Because the semiconductor market recovers, Samsung is seeing its earnings enhance. The corporate is the world’s largest maker of reminiscence chips, which have been its money cow prior to now. After a dismal present in 2023, the enterprise unit returned to revenue in Q1 2024, serving to the Korean agency publish a very good whole within the working revenue column. Robust gross sales of the Galaxy S24 sequence additionally contributed to its development.
In response to Samsung, generative AI options, DDR5 and high-density SSDs, HBM (Excessive Bandwidth Reminiscence), UFS 4.0, and a number of other different reminiscence and non-memory chips noticed robust demand this previous quarter. This bumped the typical promoting value, resulting in an even bigger revenue margin for the corporate. The foundry enterprise remains to be in loss however the losses are narrowing because of effectivity efforts in fab operations.
The cellular and networks enterprise was the most important contributor to Samsung’s revenue in Q1 2024. The unit generated an working revenue of KRW 3.51 trillion. Regardless of a low demand for premium and mid-range smartphones, the Galaxy S24 sequence bought nicely. The brand new flagships maintained stable double-digit profitability, which is a good signal. Its Galaxy AI is proving to be a serious gross sales driver.
Samsung surpassed business estimates this previous quarter
In response to CNBC, LSEG (London Inventory Change Group) estimated Samsung to generate a income of KRW 71.04 trillion and a revenue of KRW 5.94 trillion in Q1 2024. Whereas the estimated income is consistent with what the corporate generated, its quarterly revenue is considerably excessive. This means the Korean agency has sailed by way of the storm and is on its solution to growing its revenue margin. It stays to be seen how Samsung’s varied enterprise arms carry out all through 2024.
Copyright ©2024 Android Headlines. All Rights Reserved.
This publish might include affiliate hyperlinks. See our privateness coverage for extra info.
Apr 30, 2024