Samsung Electronics has announced the financial results for the first quarter, ending on March 31, 2024. The company reported consolidated revenues of 71.92 trillion KRW, driven primarily by strong sales of the flagship Galaxy S24 smartphones and the high prices of memory semiconductors. Samsung’s operating profit increased to 6.61 trillion KRW, highlighting the recovery of its Memory business due to the demand for high value-added products. The Mobile Experience (MX) and Visual Display and Digital Appliances divisions also achieved higher profitability.
The weakness of the Korean won against major currencies had a positive impact on the company’s operating profit, estimated at around 0.3 trillion KRW compared to the previous quarter. Samsung’s capital investments in the first quarter were 11.3 trillion KRW, with 9.7 trillion allocated to the Device Solutions Division (DS) and 1.1 trillion to Samsung Display Corporation (SDC). In memory, the investment focused on packaging technologies and meeting the demand for advanced products such as HBM and DDR5.
In the Memory division, Samsung reported consolidated revenues of 23.14 trillion KRW and an operating profit of 1.91 trillion KRW, highlighting strong demand for DDR5 and high-density SSDs, as well as focus on high value products like HBM and server memory.
For the second quarter, the industry is expected to remain strong, led by demand for artificial intelligence (AI). The company began mass production of HBM3E 8H and plans to produce HBM3E 12H and 128GB DDR5 products based on 1b nanometers within the second quarter. Also, mass production of V9 NAND started in the industry.
Regarding the System LSI division, the supply of SoCs and sensors increased, although profit improvement was affected by slowdown in panel demand. The division is expected to benefit from the gradual recovery in smartphone demand and is preparing to introduce advanced technologies for new wearables.
The Foundry division experienced a sales improvement delay due to weak market demand and inventory adjustments, although fab operations became more efficient. Progress is being made in the development of advanced 3nm and 2nm technologies, helping achieve the highest level of backorders.
For Samsung Display Corporation (SDC), consolidated revenues of 5.39 trillion KRW and an operating profit of 0.34 trillion were recorded. The mobile display division maintained timely supply of flexible screens for high-end smartphones and improved rigid screen utilization rates. Despite competition, SDC plans to increase sales of large panels and expand its premium product base in the second quarter.
The Mobile Experience (MX) and Networks division reported consolidated revenues of 33.53 trillion KRW and an operating profit of 3.51 trillion. Despite lower demand for smartphones overall, the Galaxy S24 series had strong sales, maintaining high profitability.
Finally, the Visual Display and Digital Appliances divisions achieved consolidated revenues of 13.48 trillion KRW and an operating profit of 0.53 trillion. They focused on premium products to enhance profitability, and are expected to explore new opportunities with global sports events in the second quarter, while in the second half of the year, a gradual recovery in TV demand is expected.
Samsung looks to the future with optimism, expecting AI demand to positively drive business conditions in the second half of 2024, despite persistent macroeconomic and geopolitical uncertainties.
Source: MiMub in Spanish
