Despite an impressive performance in Q1 2024, Samsung is riding the wave of success into the second quarter. Like with Q1 2023, when operating profits grew an extraordinary 933 percent compared to one year ago, the company is able to foresee even larger steps in its upcoming quarters flowing into Q2 2024. This optimism was due to the expectation that operating profit will increase fifteen-fold, thanks to a rebound in semiconductor prices which are supported by the growth of the artificial intelligence sector.
Samsung Profit Surge in Q2 2024
Samsung also struggled in 2023, with the chip demand decline stunting its financial growth. All the same, as we have a surging demand for AI applications and accompanied by those developments more individualized chips will come into mainstream use – making Samsung well-poised to benefit from this trend. The company forecasts an operating profit range of 10.3 trillion to 10.5 trillion won (approximately $7.54 billion) for Q2 2024.
Comparatively, Samsung reported a modest operating profit of 670 billion won (about $509.2 million) during the same period last year. The combined income of the Galaxy S24 series for Samsung constituted 53% of its total net sales in the initial quarter with a quick start off by consumers across marketplaces around this world immediately post introduction.
The Galaxy S24 range hit the market was made available a few weeks ago already, so we’ll have to wait around for this quarter to check if our demand for making that jump has held. The company expects its overall revenue for Q2 2024 to be up by a significant 23 percent with the prediction of hitting an impressive total of 74 trillion won. A deeper financial look, the results of which will have a more complete picture of revenue streams and operational efficiencies for Q2, is to be detailed during their allotted earnings call conference taking place July 31st.
Additionally, Samsung is gearing up to unveil its latest foldable flagship models, although sales from these releases are not expected to impact the immediate quarter’s financial results significantly. The company remains optimistic about its overall market position and continues to innovate across its product lines, aiming to maintain its leadership in the global technology landscape.
FAQs
What factors are contributing to Samsung’s projected 15-fold increase in operating profit for Q2 2024?
Samsung attributes this anticipated growth to rebounding semiconductor prices, driven by increased demand for chips used in artificial intelligence applications.
How did the Galaxy S24 series impact Samsung’s earnings in Q1 2024, and what are expectations for its ongoing sales?
In Q1 2024, the Galaxy S24 series accounted for 53 percent of Samsung’s total net earnings, reflecting strong initial sales momentum. Ongoing sales performance will be closely monitored to gauge continued consumer interest in the new models.
