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Today, Samsung announced financial results for its second quarter of 2024 and the numbers are quite impressive. Samsung reported a 23.42% boost in revenue in Q2 2024 with a bumper rise of 1,458% in operating profits compared to the same period last year. The main reason behind the higher-than-expected Q2 revenue is the ever-rising price and soaring demand for advanced memory chips that are vital for AI.
In its announcement blog for the Q2 results of 2024, Samsung revealed that the total revenue stood at KRW 74.07 trillion (~$53.5 billion). This makes up an impressive 23.42% jump as compared to revenue of the second quarter of 2023. That’s not all, the company also disclosed that its operating profit for the second quarter of this year was KRW 10.44 trillion (~$7.5 billion), which is 1,458% higher than it reported last year.
Samsung reports huge profits in Q2 2024, credits mainly its chip business for the same
Not to mention, these numbers are significantly higher than what analysts had estimated. Samsung says that these impressive numbers are the result of improved sales and profitability of the HBM and DRAM memory chips. Samsung’s Device Solutions business saw KRW 28.6 trillion (~$2.07 billion) in sales. Whereas, the operating profit stood at KRW 6.45 trillion (~$4.67 billion). For the initiated, this is the first profit Samsung’s chip business has reported in over a year.
The tech giant expects the sales of HBM and SSD to stay solid for the rest of the financial year. It also plans to expand the production of HDM and server DRAM chips, which could affect the production of the usual DRAM chips. The company also added that the growth in its display panel business has also contributed to it.
Slightly low smartphone sales and confirmation of the 3nm Exynos 2500 processor
Samsung’s Q2 2024 results also revealed that the company’s smartphone sales saw a slight decline. Well, that’s somewhat expected since the company launches flagship models in the first quarter. So, it is evident that the sales are higher in that quarter only. There’s a reason for that too. Usually, the sales decline as no major smartphone launch follows after the first quarter. Having that said, Samsung mentioned that the sales of Galaxy S24 Ultra have remained strong.
In the announcement of Q2 results for 2024, Samsung also confirmed the presence of the Exynos 2500 chip for the very first time. It mentioned that its System LSI business arm is focusing on ensuring a consistent supply of the said chip. The Exynos 2500 has been previously reported to be used in the Galaxy S25 series coming in 2025. Samsung added that it has received a good response on the first 3nm chip, the Exynos W1000. Notably, Samsung used this chip in the recently launched Galaxy Watch 7 and the Galaxy Watch Ultra. Therefore, the company hopes it won’t be having any issues with the Exynos 2500.