Samsung released its second-quarter financial results this year after revealing its revenue projections earlier in the month. In comparison to the previous year, the South Korean company saw a 23.42% increase in revenue and a staggering 1,458% increase in operating profit in Q2 2024. The higher-than-expected figures can be attributed to the continuous surge in memory chip prices. Samsung disclosed its final Q2 2024 financial results.
Revenue for the company was KRW 74.07 trillion (~$53.5 billion), up 23.42% from the second quarter of 2023. Operating profit for the second quarter was KRW 10.44 trillion (~$7.5 billion), an increase of 1,458% over the same period the previous year.
These figures surpass the projections of analysts. The South Korean company disclosed that increased memory chip (HBM and DRAM) sales and profitability are the reason for its impressive results. It added that OLED panel sales are the reason Samsung Display, its display panel division, is performing well. For future expansion, the corporation spent KRW 8.05 trillion (about $5.83 billion) on research and development.
This is the first profit Samsung Device Solutions, the chip division of the South Korean company, has seen in more than a year. Sales of KRW 28.6 trillion (about $2.07 billion) and operating profit of KRW 6.45 trillion (about $4.67 billion) were recorded by its Device Solutions division.
Samsung anticipates continued good sales of memory chips (SSD and HBM) for the remainder of the year. It is producing more HBM and server DRAM chips, which could have an impact on how much of its regular DRAM chips are produced.
Its HBM3 chips have been certified by Nvidia as AI chips for China, and by November 2024, according to rumors, its HBM3E chips may also gain Nvidia certification. Thus, the company’s HBM chip future seems bright. The business is currently developing HBM4 chips, which could be available by 2026.
As is typical for the company, Samsung’s smartphone sales decreased marginally in the second quarter of 2024. Every year, the firm releases its flagship phones in the first quarter, which often results in increased sales for the company. Sales are down in the second quarter since there aren’t any big releases that consumers are anticipating. Samsung claims that the Galaxy S24 series is still selling well, nevertheless. Earlier this month, the company unveiled the Galaxy Z Flip 6 and the Galaxy Z Fold 6, two new high-end phones.
Samsung also said that, in order to guarantee a steady supply of the Exynos 2500 chip for “flagship products,” its System LSI business unit is concentrating on its commercial capabilities. Samsung has officially verified the Exynos 2500’s existence for the first time. This processor is anticipated to be included in the upcoming Galaxy S25 smartphones. It said that the Exynos W1000, its first 3nm chip, had received excellent feedback.
The Galaxy Watch 7 and Galaxy Watch Ultra both make use of this processor. Therefore, the business is hoping that the Exynos 2500, which may be launched in Q4 2024 or Q1 2025, won’t cause any problems. January 2025 is probably when the Galaxy S25 series will officially launch.
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