Samsung Electronics announced on Wednesday that its operating profit for the second quarter (Q2) skyrocketed by over 15 times compared to the same period last year, thanks to a strong performance in its semiconductor division. The world's leading manufacturer of mobile phones and memory chips reported an operating profit of 10.44 trillion won ($7.54 billion) for the April-June period, up from 668.5 billion won the previous year, according to a regulatory filing.
This marks the first time Samsung Electronics has posted an operating profit exceeding 10 trillion won in seven quarters, since Q3 of 2022. The company's sales surged 23.4% year-on-year to 74.06 trillion won, and net profit soared by 471% to 9.84 trillion won.
Sales and shipments of the latest Galaxy S24 series, released in January, surpassed those of its predecessor, the Galaxy S23, in both the second quarter and the first half of the year.
Samsung anticipates a year-on-year increase in overall smartphone demand in the second half of 2024, driven by growing interest in premium products, the rising demand for AI, and the introduction of new devices with innovative features.
The company’s earnings surpassed market expectations, with analysts predicting an average operating profit of 10.29 trillion won, according to a survey by Yonhap Infomax, the financial data subsidiary of Yonhap News Agency.
Samsung invested 8.05 trillion won in research and development during the quarter ending in June and allocated 12.1 trillion won for facility investment, including 9.9 trillion won for the semiconductor sector.
The semiconductor division recorded 28.6 trillion won in sales for the three-month period ended June, with an operating profit amounting to 6.45 trillion won. This is the first quarterly operating profit that Samsung's flagship business has managed in over one and a half years now since Q1 2023, after the company previously posted five straight quarters of losses.
The strong performance came amid higher demand for memory chips used in artificial intelligence servers and solid-state drive applications.
Even Samsung's television business witnessed improvement during April to June, which is expected to grow further upon the impact of global sports events hosting the 2024 Paris Summer Olympics. Its home appliance unit is gradually recovering with increased demand for air conditioners and new products.
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