Samsung stated on Tuesday that it anticipates robust demand, driven by AI, for chips and tech products throughout the year.
As its chip division returned to profitability following a severe downturn last year, the company posted an operating profit of 6.61 trillion won for the first quarter, a tenfold increase from the same period the previous year. Samsung reported that the quarter’s revenue grew 12.8% to 71.92 trillion won, driven by robust sales of Galaxy S24 smartphones and higher memory chip pricing.
The South Korean tech giant stated that robust overall demand, particularly in the area of generative AI, is projected to keep business circumstances favourable through 2024.
After posting a 4.58 trillion won loss the previous year, Samsung’s semiconductor subsidiary, Device Solutions (DS) subsidiary, turned a profit for the first quarter of 1.9 trillion won. Samsung claimed that by concentrating on high-value goods for demand across servers, storage, PCs, and mobile, it was able to achieve “qualitative growth”.
The demand for generative AI showed strong trends for servers and storage, the division’s primary growth-driving industry, according to the business. High-bandwidth memory (HBM), conventional servers, and storage solutions would all see an increase in demand due to the ongoing supply of AI servers and the consequent growth of related cloud services, according to Samsung.
The company stated that HBM3E 8H began mass production this month and that HBM3E 12H is anticipated to begin production in the second quarter.The company’s smartphone business section, the Mobile Experience (MX) Business, generated 3.51 trillion won in operational profit in the first quarter.The company stated that HBM3E 8H began mass production this month and that HBM3E 12H is anticipated to begin production in the second quarter.
Despite the quarter typically being a slow demand season, Samsung claims that high sales of the Galaxy S24 series helped the unit to retain double-digit profits. According to the business, the Galaxy AI capabilities on phones, such Circle to Search, shown strong usage rates and helped drive sales growth.
The MX Business hopes to keep up its sales pace in 2024 by bringing Galaxy AI to other phones, tablets, and foldable gadgets.
