South Korea’s Samsung Electronics announced its first quarter results on the 30th, with an operating profit of 6.6 trillion won ($4.8 billion), more than 10 times the same period last year. Picture taken in New York in November 2021 (2024 Reuters / Andrew Kelly)
[ソウル ３０日 ロイター] – Samsung Electronics South Korea (005930.KS) New Tab, opens a new tab announcing its first quarter financial results on the 30th, with an operating profit of 6.6 trillion won ($4.8 billion), more than 10 times the same period last year. Semiconductor memory prices have improved rapidly due to the artificial intelligence (AI) boom.
The company predicted that demand for AI will remain strong in the second half of the year, supporting sales of memory chips and high-tech equipment.
Memory chip sales almost doubled in the first quarter from a year earlier.
Samsung Electronics said, “Although the situation will remain volatile due to macroeconomic trends and geopolitical issues in the second half of 2024, the business environment is expected to remain favorable, with demand focused mainly on AI remains strong.”” he said.
The operating profit was the highest level since the third quarter of 2022. There was no difference between the preliminary figures. In the same period last year, he earned 640 billion. See more
The semiconductor division’s operating income turned into a surplus of 1.91 trillion won. In the same period last year, the deficit won 4.58 trillion.
Overall sales increased 13% to 71.9 trillion won. Memory chip sales increased 96% to 17.49 trillion won.
The memory chip business posted its first surplus since the third quarter of 2022. Customers rushed to buy the products expecting prices to rise further in the future.
According to research firm TrendForce, prices of NAND flash memory (electrically erasable and rewritable memory) rose 23% to 28% in the first quarter compared to the previous quarter. DRAM (retentive read and write memory) prices have increased by around 20%.
Samsung announced this month that it has begun mass production of the HBM3E 8-layer, high-bandwidth memory (HBM) for productive AI. Production of the 12-layer version is expected to begin in the second quarter.
“This year, we plan to more than triple the supply of HBM-related chips compared to last year,” a company executive said in a conference call.
The mobile device division’s first quarter operating profit was 3.51 trillion won, down from 3.94 trillion won in the same period last year. The profit margin of the flagship smartphone “Galaxy S24” released in the same quarter fell. Higher costs such as the increase in memory chip prices had an impact.
According to the company, the S24’s AI functionality has led to increased sales, and it maintained double-digit profits in the first quarter. About 50% of customers said they bought the S24 because of its AI features. It is said that 60% of users regularly use AI functions.
Our Code of Conduct: New Tab Thomson Reuters “Principles of Trust”, opens a new tab
#Samsung #Electronics #quarter #operating #profit #times
