Samsung has been struggling over the past couple of years, especially due to its most important product: memory chips. However, things now seem to be improving financially, as the company has reported a huge rise in its profit. Earlier today, Samsung revealed its earnings guidance for Q1 2024.
Samsung's profit rises 931% on the back of recovering chip sales
Samsung Electronics has revealed that its sales during Q1 2024 would be around KRW 71 trillion ($52.52 billion). Its operating profit would be around KRW 6.6 trillion ($4.88 billion) for the same period. That's an increase of 11.37% in sales and a whopping 931% in operating profit compared to Q1 2023. When you compare these figures to Q4 2023, sales have seen an increase of 4.75%, while operating profit has increased by 134%.
This is the company's highest earnings in over a year, largely due to recovering semiconductor chip sales. In the first quarter of 2023, its operating profit nosedived to a measly KRW 640 billion ($473 million) due to a combination of economic downturn and the downcycle of the memory chip segment. Its earnings during that quarter were the worst in over a decade.
The company tackled its issues by reducing memory chip output and improving the sales of its high-end home appliances, smartphones, and TVs. After its all-around efforts, the sales of its memory chips increased in Q4 2023, and its memory chip segment returned to profit for the first time last year. The sales of the Galaxy S23 series and the Galaxy S24 series have improved compared to previous-generation devices. In fact, the Galaxy S24 series broke pre-order records in several markets.
You can watch our review of the Galaxy S24 Ultra in the video below.
Samsung expects its earnings to reach 2022 levels this year, which means we could see it reach new profit records by the end of this year. The company will unveil its accurate earnings for Q1 2024 later this month.
