After last year’s declines, tech giant Samsung is back in the game. The company expects a massive 900% increase in operating profit in Q1 2024. Analysts, however, had predicted much lower figures. Samsung attributes this rocket start to a resurgence in demand for electronics and chips.
Performance Comparison:
| Metric | Q1 2023 | Q1 2024 (Estimate) | Change |
|---|---|---|---|
| Operating Profit (in billions of USD) | 0.49 | 4.9 | +900% |
| Sales (in billions of USD) | 50.7 | 71.0 | +40% |
The expected profit increase is huge. Operating profit is expected to rise to 6.6 trillion Korean won ($4.9 billion) from 0.64 trillion won in the previous year. Analysts had only estimated a profit of 5.4 trillion won.
The reason for the growth is the resurgence in demand for consumer electronics and chips. People are again spending money on new devices, and manufacturers need chips to make them. Samsung also expects sales to increase by more than 11% to 71 trillion won.
Samsung is optimistic about the whole of 2024. The company expects its mobile and chip businesses to recover.
Success with new models:
- Samsung has recently seen great success with new smartphone models, such as the Galaxy S24 and Galaxy Z Fold 5.
- These models are popular with customers and reviewers due to their innovative features, sleek design, and excellent performance.
- In addition to smartphones, Samsung has also achieved success with new models of TVs, laptops, and other electronic devices.
- The success of Samsung’s new products is one of the factors contributing to the company’s sharp profit increase in Q1 2024.
Source: https://www.samsung.com/us/
