Samsung seems to have made a strong start to 2024 after a challenging economic period in 2023. The company saw an 85% decline in annual profit in 2023 but bounced back dramatically in the first quarter of 2024 with a 933% increase, achieving 6.61 trillion South Korean won (approximately 4.8 billion dollars) in revenue.
Samsung earned the highest revenue of its history
Analysts predict that Samsung will perform even better in the second quarter, expecting revenue between 8.5 trillion and 8.8 trillion won (approximately 6.1 billion to 6.4 billion dollars).
Behind Samsung’s success, as the world’s largest producer of smartphones, TVs, and memory chips, is believed to be the explosion in artificial intelligence (AI) technologies. With significant advancements in AI through Samsung Galaxy AI, coupled with rising chip prices, the South Korean tech giant has experienced substantial economic relief and achieved record revenues.
In 2023, chip prices declined due to reduced demand for electronics, leading Samsung’s semiconductor division to incur losses for the first time in 14 years. However, increased demand for AI-focused chips in 2024 has led to significant profit margins for the company. The second quarter of 2024 saw DRAM chip prices rise by up to 18% and NAND storage chips by up to 20%, benefiting Samsung’s business.
Despite the significant profits from chip sales, Samsung aims to further increase its revenues by expanding its product range after announcing new-generation devices scheduled for release on July 10, 2024.
What are your thoughts on Samsung’s revenue figures? Feel free to share your opinions in the comments.
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