Samsung, the world’s largest TV maker and memory chip manufacturer, has reported a staggering operating profit of 6.6 trillion won ($4.89 billion) for the first quarter of this year, surpassing expectations and marking a significant increase from last year’s 640 billion won. This remarkable performance represents a 931% surge, making it Samsung’s highest operating profit since the third quarter of 2022.<\/p>\n
While operating profit exceeded forecasts, revenue fell slightly short, reaching 71 trillion won, an 11% increase from the previous year but below the projected 72.3 trillion won. Analysts speculate that the surge in operating profit may be attributed to improved inventory valuation of NAND flash chips, driven by increased demand.<\/p>\n
Park Sung-soon, an analyst at Korea Investor Relations Service, noted that the rise in chip prices, particularly for DRAM and NAND flash chips, significantly contributed to Samsung’s strong performance. Data from Trend Force indicates that DRAM chip prices rose by about 20% during the first quarter compared to the previous quarter, while NAND flash chip prices increased by 23% to 28%.<\/p>\n
The optimistic outlook for memory chip demand, coupled with growing appetite for chips like high-bandwidth memory (HBM) used in AI chipsets, has propelled a 34% increase in Samsung shares over the past year, outpacing the broader market.<\/p>\n
Analysts attribute Samsung’s solid profit to the successful launch of its flagship Galaxy S24 smartphones in late January. Eugene Investment & Securities estimates that Samsung shipped 57 million smartphones during the quarter, up 8% from the previous quarter, with the average selling price likely rising by 30% to $340 quarter-on-quarter.<\/p>\n
Initial response to the Galaxy S24 smartphones has been positive, driven by features such as on-device AI. Global sales of the Galaxy S24 series during the first three weeks of availability grew by 8% compared to the previous year’s Galaxy S23 series, according to data from Counterpoint.<\/p>\n","protected":false},"excerpt":{"rendered":"
Samsung, the world’s largest TV maker and memory chip manufacturer, has reported a staggering operating profit of 6.6 trillion won ($4.89 billion) for the first quarter of this year, surpassing expectations and marking a significant increase from last year’s 640 billion won. This remarkable performance represents a 931% surge, making it Samsung’s highest operating profit […]<\/p>\n","protected":false},"author":27,"featured_media":26146,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[173,249],"tags":[],"class_list":["post-26145","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-world-news"],"aioseo_notices":[],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts\/26145","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/users\/27"}],"replies":[{"embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/comments?post=26145"}],"version-history":[{"count":3,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts\/26145\/revisions"}],"predecessor-version":[{"id":26172,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts\/26145\/revisions\/26172"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/media\/26146"}],"wp:attachment":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/media?parent=26145"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/categories?post=26145"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/tags?post=26145"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}