Samsung's second-quarter profit up 13-fold, driven by AI and chip industry

Samsung Electronics has announced a 13-fold increase in profits in the second quarter compared to last year.

Here's What We Know

The company's operating profit for the second quarter of 2024 is expected to reach 8.8 trillion won (US$6.34 billion), the highest since the third quarter of 2022. This rapid growth is largely due to the recovery of Samsung's semiconductor segment.

The division's operating profit for the second quarter was 4.6 trillion won, compared to a loss of 4.36 trillion won in the same period last year. Demand for DRAM and NAND Flash chips used in artificial intelligence (AI) has increased significantly, leading to a 13-20% rise in prices.

Samsung's mobile business, on the other hand, experienced a drop in profits due to rising spare parts and marketing costs, as well as investments in the development of AI services. The number of smartphones sold remained at the level of the previous year.

On 10 July, the company plans to unveil its latest flagship foldable smartphones, Galaxy Fold 6 and Galaxy Flip 6, as well as a health monitoring ring to compete with Apple products in the high-end gadget market.

Analysts predict that Samsung's total operating profit for the second quarter will be between 8.547 trillion won and 8.8 trillion won. The company will release a detailed earnings report at the end of the month.

Source: Gizmochina