Samsung Sees Steep Jump in Revenue and Operating Profit in 1Q24

Samsung expects a turnaround in the global smartphone market in the second half of 2024. The company believes it will be driven by stabilizing consumer sentiment and growth in emerging markets, with a similar rebound expected in tablets and wearables.

Mobile eXperience (MX) VP Daniel Araujo said the rebound in H2 will come after continued weakness in the current quarter. He added the MX division is aiming for annual growth in smartphone revenue as they maintain sales momentum by applying Galaxy AI beyond the S24 to existing flagship products.

MX and Networks revenue in Q1 increased 5% to KRW33.5 trillion ($24.3 billion), with operating profit falling 11% to KRW3.5 trillion. Shipments of smartphones and tablets were both flat at 60 million and 7 million, respectively, while smartphone ASP increased 3.4% to $336. Araujo said that with escalating geopolitical instability and likely price hikes in key components, it aims to secure solid profitability by continuing to streamline operations.

On a group level, net profit jumped more than fourfold to KRW6.6 trillion, with sales growing 63.8% to KRW71.9 trillion. The gains were aided by higher prices of memory chips, with the chip division’s revenue nearly doubling to CNY17.5 trillion and the unit returning to profit. Group revenue rose 13% to KRW71.9 trillion.