Samsung has released its financial guidance for the second quarter of 2024, showing a significant increase in profits. The Korean company also reported revenue of around 74 trillion won, a 23% increase from the same period last year.
Operating profit is expected to be KRW 10.4 trillion, or fifteen times higher than April-June 2023.
| (all units in (Wonderboss / USD) |
Q2 2024 Revenue forecasts |
First quarter 2024 | Change from one quarter to another | Q2 2023 | Year-on-year variation |
| Sales | 74,000 billion / 53.5 billion |
71.92 trillion / 52.06 billion |
2.9%% | 60,000 billion / 46 billion |
23% |
| Operating profit | 10.4 trillion / 7.53 billion |
6.61 trillion / 4.78 billion |
57% | 0.6 billion / 455 million |
1633% |
However, this dramatic increase is slightly misleading. 2023 has been a tough year for Samsung due to the decline in chip demand. As consumers and manufacturers have shifted away from chips to graphics cards, they are now focusing on the growing AI trend.
Companies are developing AI-powered devices and servers that require more computing power, and Samsung is providing the necessary semiconductors. A comparison with 2022, before the significant decline, shows that sales and profits are now in the same range.
According to a study by TrendForce, cited by Reuters, memory chip prices have increased by 13 to 18 percent in just one quarter.
Analysts predict that high-end chips (HBM) and SSDs will dominate the market in 2024, although Samsung lags behind its Korean counterpart SK Hynix in supplying HBM to key customers like Nvidia.
