Samsung is clearly one of the worst out there – SMARTmania.cz

• Samsung is out of the crisis and returning to visible black numbers
• In the first quarter of this year, he was particularly pleased with the chip division
• Smartphones, especially premium ones, did not sell well either

Analytical firms announced two weeks ago that Samsung took back the crown of the largest smartphone manufacturer in the first quarter of this year. They based their analyzes on their internal sources, as we had to wait until the current week for the official publication of the financial results. The numbers released by Samsung yesterday indicate that the first quarter of this year was extremely successful in its presentation.

Ten times greater operating profit

Samsung announced that it took in 71.92 trillion Korean won (about 1.22 trillion crowns) between January and March this year, which is 13 percent more year-on-year. Operating profit grew significantly more, by an incredible 932.81 percent. At the beginning of last year, the Korean company teetered on the edge of the black and red numbers, but this year it finally managed to return to visibly better numbers – the operating profit was 6.61 trillion won (about 110 billion crowns). Although this is still far from the record profits of 2017-18, there is a clear sign of a gradual recovery.

Samsung owes its better numbers to the chip division, thanks to the increased interest in memory chips, especially those with high added value – HBM and DDR5 memory, server SSD or UFS 4.0 type storage. While the chip division posted a hefty loss of 4.58 billion won in the first three months of last year, this year it ended with a profit of 1.91 billion.

The mobile division didn’t fare too badly either, reporting sales of 33.53 trillion won (up 5 percent) and operating profit of 3.53 trillion won (down 10.91 percent). Samsung excuses the lower profit as an overall lower interest in phones in the first quarter, on the contrary, it praises the strong sales of the Galaxy S24 series, which were allegedly helped by the bet on artificial intelligence.

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Samsung is no longer optimistic about the second quarter – due to seasonality, the demand for phones will fall a little more, only to rebound in the second half of the year. In the summer, Samsung will deliver a new generation of flexible phones to the market and add a smart Galaxy Ring to it. By next quarter, Samsung also predicts strong memory sales, mainly due to high hardware requirements for generative artificial intelligence.