Samsung Electronics operating profit jumps 931% in Q1

[Photo by MK DB]

Samsung Electronics‘ semiconductor operations returned to profitability for the first time in five quarters since the last quarter of 2022, buoyed by a resurgence in memory chip demand.

The first-quarter earnings revealed by the Korean chip maker outweighed market expectations, with preliminary operating profit soaring by 931.87 percent year-on-year to 6.6 trillion won ($4.7 billion) for the first quarter of 2024.

The better-than-expected earnings were driven by increased prices for both DRAM and NAND Flash, and the company’s memory business rebounded to meet demand for high-value-added products amid a recovering tech market. The mobile division saw boosted profits, primarily due to robust sales of its flagship smartphone, the Galaxy S24.

Sales totaled 71.9 trillion won, the first return to the 70 trillion won mark in the five quarters since the fourth quarter of 2022. Net profit surged by 328.98 percent to 6.7 trillion won.

[Graphics by Song Ji-yoon]

The Device Solutions (DS) division, responsible for the semiconductor business, recorded sales of 23.1 trillion won and an operating profit of 1.91 trillion won, marking its first profitable quarter since the end of 2022. The division experienced significant growth thanks to demand for premium products such as high-bandwidth memory (HBM), DDR5, and server SSDs, reflecting substantial advancements in its offerings.

The Device Experience (DX) segment reported sales of 47.2 trillion won and an operating profit of 4.07 trillion won, while the Mobile Experience (MX) division saw sales and operating profit growth that was boosted by the Galaxy S24’s successful launch despite a slowdown in the smartphone market.

Samsung Electronics’ capital expenditure for the first quarter of 2024 was 11.3 trillion won.