Samsung’s profits surge over 900% in first three months of 2024

• Samsung Electronics anticipates a 931% increase in operating profit from January-March 2023.
• The surge is due to a rebound in global semiconductor prices, which have risen by around a fifth in the last year.
• Sales of Samsung’s new flagship Galaxy S24 smartphones are also expected to boost sales.

Samsung Electronics expects its profits for the first three months of 2024 to jump by more than 10-fold compared to a year earlier. This surge comes as prices of chips have recovered from a post-pandemic slump and demand for artificial intelligence (AI) related products booms.

Based in South Korea, Samsung is the world’s largest maker of memory chips, smartphones, and televisions. The company has scheduled to release a detailed financial report on 30 April.

The technology giant estimates that its operating profit rose to 6.6 trillion won ($4.9bn; £3.9bn) in the January-March quarter, marking a 931% increase compared to the same period in 2023. This surpasses analysts’ expectations of around 5.7 trillion won.

Analysts expect a rebound in semiconductor prices on the global market after a severe downturn a year earlier to boost its earnings. Experts estimate that global memory chip prices have risen by around a fifth in the last year.

Samsung’s semiconductor division typically serves as the firm’s largest revenue earner. Furthermore, analysts anticipate that demand for semiconductors will continue to remain robust this year, driven by the surge in AI technologies.

The earthquake that struck Taiwan on 3 April might also tighten the global supply of chips, potentially enabling Samsung to raise prices further. Taiwan hosts several major chipmakers, including TSMC, which supplies Apple and Nvidia.

Although TSMC has stated that the earthquake did not significantly affect its production, it did experience some disruption to its operations. Sales of its new flagship Galaxy S24 smartphones, which were launched in January, are also expected to boost Samsung.

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