Samsung Reports Strong Q1 Profit as Memory Chip Sector Recovers

By Trisha Andrada

Apr 30, 2024 05:33 AM EDT

As its flagship memory chip business began to show signs of improvement, South Korea's Samsung Electronics announced a first-quarter operating profit that was about ten times higher than the previous year.

Samsung Electronics' Q1 Operating Profit Increases to $4.85 Billion

The flagship subsidiary of Samsung Group announced an operating profit increase to 6.61 trillion won ($4.85 billion) in the first quarter of the year, as reported by Al Jazeera. The total income increased by about 13% to 71.9 trillion won ($52 billion). Higher pricing for memory chips and demand for the Galaxy S24 smartphone are the reasons for these positive results.

The largest memory chip producer in the world also said that sales had been raised by almost 0.3 trillion won, thanks in large part to the weakening of the won versus the dollar.

In a press statement, the company said: "In the second half of 2024, business conditions are expected to remain positive with demand - mainly around generative AI - holding strong, despite continued volatility relating to macroeconomic trends and geopolitical issues."

Samsung Shares See 1.6% Increase in Early Trading

While South Korea's benchmark index increased by half a percent in early trade, Samsung shares increased by 1.6%.

Although sales of memory chips fell as a consequence of the global economic recession, Samsung nonetheless managed to post good financial results that were above market forecasts.

The global economy relies on semiconductors more than any other component. Modern technology relies on these integrated circuits, which are present in almost every device that consumers use every day.