Wednesday, October 30, 2024

Samsung’s profit jumps 72.8% in Q3 2024 despite chip struggles

Earlier today, Samsung announced its earnings for the third quarter of 2024. While the company's profits beat market expectations, its struggles in the memory chip market remain. The South Korean firm reported a consolidated revenue of KRW 79.1 trillion ($57.34 billion) and an operating profit of KRW 10.1 trillion ($7.3 billion).

Samsung's net profit in Q3 2024 was 72.8% higher than last year

Samsung Electronics' revenue was KRW 79.1 trillion ($57.34 billion) in Q3 2024, while its net profit was KRW 10.1 trillion ($7.3 billion). The company's revenue was 17.3% higher, while net profit was 72.8% higher compared to figures from Q3 2024. While these numbers show a positive sign, the company is still struggling with memory chips, which is considered its cash cow.

The South Korean operating profit was KRW 9.18 trillion ($6.65 billion), a staggering 277.4% jump compared to last year. Still, the operating profit was around 10% lower than analysts estimated.

Samsung DDR5 DRAM 12nm 16Gb Chips

The company's chip business (Samsung Semiconductor) contributed an operating profit of KRW 3.86 trillion ($2.79 billion), which is a massive drop compared to the previous quarter (Q2 2024) but an improvement compared to a loss of KRW 2.18 trillion ($1.58 billion) from Q3 2023.

Samsung said its smartphone business (Samsung MX) showcased double-digit annual sales growth. The smartphone business saw growth in revenue and profit due to the launch of new smartphones, tablets, and smartwatches. The company said it aims to increase profitability by selling more higher-end phones and ecosystem products like Galaxy Buds and Galaxy Watches.

The South Korean firm, known for high-quality OLED panels for smartphones, saw increased sales and profit in the segment. Apple launched its new iPhones recently, and they use Samsung Display's OLED panels. Samsung said it expects to maintain leadership in the high-end OLED panel market.

In its home appliances and TV segment (Samsung DX), the company plans to increase profits by selling high-end models. In Q3 2024, it posted a revenue of KRW 14.4 trillion ($10.4 billion) but a low profit of just KRW 0.53 trillion ($384 million). The company says it expects to see improved sales in the fourth quarter of this year, as TV demand will recover due to the year-end festive season.

The post Samsung’s profit jumps 72.8% in Q3 2024 despite chip struggles appeared first on SamMobile.


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