What you need to know
- Samsung's Q2 2024 report is here and the company attributes the positive shift in revenue to “strong” demand for AI and its Galaxy S24 series.
- The company says its memory business has continued to recover as the industry looks to Samsung for HBM, DRAM and SSDs.
- The report also confirmed that the Exynos 2500 is on the way and that preparations are underway for a “stable supply.”
- Samsung looks ahead to Q3 with Flip 6, Fold 6 and wearables after smartphone interest dropped in Q2.
We've crossed into financial gains territory and Samsung's latest report looks positive, thanks to the Galaxy S24 and AI.
Samsung Q2 2024 earnings report is beating experts’ expectations as the brand recorded KRW 74.07 trillion in consolidated revenue. Additionally, it posted KRW 10.44 trillion in operating profit. CNBC According to statistics, Samsung's operating profit increased by 23% in the second quarter compared to the same period last year. In addition, statistics show that the company's operating profit increased by 1,458%.
Another highlight was the company’s MX (mobile) and network businesses, which recorded KRW 27.38 trillion in consolidated revenue and KRW 2.23 trillion in operating profit. During the earnings conference call, Samsung said that “demand for smartphones declined sequentially in the seasonally weak quarter, particularly in the premium segment.”
Despite a “sequential decline,” the company reported that Galaxy S24 The series achieved “double-digit” growth in shipments and revenue compared to the S23.
AI is another aspect of Samsung's revenue that it expects to continue into the second half of 2024. The company also expects “groundbreaking” new products and features to help its revenue recover. These new devices are the Galaxy Z Flip 6, Fold 6, Galaxy Watch 7and the galaxy ringas Samsung says demand in those areas should increase in the third quarter.
In terms of memory, Samsung says its DS division continued to improve, posting KRW 28.56 trillion in consolidated revenue and KRW 6.45 trillion in operating profit. The report cites “strong demand” for HBM, DRAM and SSDs. More importantly, Samsung confirmed the existence of the Exynos 2500, saying it will ensure a “stable supply” for upcoming flagship models.
This is the second time Samsung has reported a positive quarter, as the first quarter saw a turnaround (of relief) as its The memory business is back to normalThe launch of the Galaxy S24 series in January also contributed to the company's positive first quarter along with its suite of Galaxy AI features.
Samsung's mobile director TM Roh discussed the company's latest developments. A new approach to AIstating that its R&D will be primarily responsible. Additionally, consumers could be expecting new hardware changes for Samsung as it looks to incorporate artificial intelligence features into the device.
Looking ahead to the third quarter, Samsung's positive outlook is likely attributed to the July 10 launch of the latest foldable phones and wearables. How well these devices perform remains to be seen, considering the Flip 6 and Fold 6 haven't received the The same warm early reception As last year, Samsung reportedly managed to secure 910,000 pre-orders for its foldable devices in South Korea, slightly less than its record figure for 2023.
Although the number was down, the Flip 6 was said to account for 60% of those pre-orders.
