Samsung Expects 10-Fold Profit Surge in Q1 2024
Samsung Electronics has anticipated a remarkable surge in profits for the first quarter of 2024, projecting a more than tenfold increase compared to the same period last year.
This surge, Excel Magazine International learnt is attributed to the recovery of chip prices post-pandemic and the escalating demand for artificial intelligence (AI) related products.
As the world’s leading manufacturer of memory chips, smartphones, and televisions, the South Korea-based conglomerate is poised to unveil its detailed financial report on April 30th.
Samsung estimates its operating profit to reach 6.6 trillion won ($4.9bn; £3.9bn) in the January-March quarter, marking a staggering 931% surge from the corresponding period in 2023, surpassing analysts’ projections of approximately 5.7 trillion won.
The resurgence in semiconductor prices globally, witnessing a one-fifth increase over the past year, is expected to bolster Samsung’s earnings significantly. Notably, Samsung’s semiconductor division remains a principal revenue driver for the conglomerate.
With the persistent demand for semiconductors, fueled by the burgeoning AI sector, Samsung is well-positioned to capitalize on the market dynamics.
Moreover, the recent earthquake in Taiwan on April 3rd may further tighten the global chip supply, potentially allowing Samsung to implement price hikes.
While Taiwan hosts key chip manufacturers like TSMC, a major supplier to tech giants like Apple and Nvidia, Samsung remains resilient amidst potential disruptions in the semiconductor supply chain.
Additionally, Samsung’s recent launch of the flagship Galaxy S24 smartphones in January is expected to contribute positively to its sales figures, further augmenting its revenue streams.
