Samsung Electronics reported positive financial results for the first quarter (Q1) of 2024, ending March 31. The company achieved significant growth in both revenue and operating profit, demonstrating resilience amid a seasonally weak mobile market.

Samsung Q1 2024 Earnings Report: Memory Recovery, Mobile Support Profitability

Strong overall performance

Consolidated revenue reached 71.92 trillion Korean Won (KRW), which translates to approximately 52.07 billion USD, representing a 13% increase year-on-year (YoY) and a 6% increase QoQ. This positive performance is mainly due to the memory business segment.

Operating profit rose a significant 932.81% year-on-year to 6.61 trillion won (US$4.78 billion). This dramatic turnaround can be attributed to the memory business successfully addressing the demand for high value-added products such as HBM (High Bandwidth Memory), DDR5 (Double Data Transfer Rate 5), server SSDs (Solid-State Drives ) and UFS 4.0 (Universal Flash Storage) in various sectors, including servers, storage solutions, computers and mobile devices. In addition, the memory business benefited from an increase in average selling prices (ASP).

Mobile eXperience (MX) Business: Growth and Profitability Despite Challenges

The MX and Networks businesses, collectively referred to as the MX division, reported 33.53 trillion won in consolidated revenue, representing 5% year-over-year growth. However, operating profit was 3.51 trillion Korean won, down 10.91% year-on-year but up 28.57% quarter-on-quarter.

This mixed performance can be explained by seasonal trends in the smartphone market. Q1 typically has lower demand, resulting in a consistent decline in both volume and value in the premium and mainstream segments. Despite this seasonal headwind, MX Business achieved revenue and operating profit growth thanks to strong sales performance of the Galaxy S24 series. Continued efforts to optimize resources also contributed to maintaining robust double-digit profitability. Overall, MX Business has successfully addressed rising component costs while delivering revenue growth and maintaining stable profitability.

Looking ahead: Focus on leading strategy and investment in research and development

For the second quarter (Q2) of 2024, Samsung expects a further decline in overall smartphone demand due to continued seasonality. As a result, MX Business expects smartphone shipments to decline, while tablet shipments are expected to remain in line with Q1 levels.

To counter these seasonal challenges, MX Business will maintain its focus on flagship smartphone sales. Samsung plans to build on the success of the Galaxy S24’s AI experience by integrating similar features into other flagship models, thereby improving the product’s competitiveness.

In addition, the MX division recognizes continued geopolitical instability and potential cost increases for key components. To maintain profitability in this complex environment, MX Business will emphasize operational optimization efforts. Despite these headwinds, Samsung remains committed to investing in research and development (R&D), especially in the field of artificial intelligence (AI), emphasizing the companylong-term focus on innovation.

Second half outlook: market recovery and AI expansion

The second half of 2024 presents a more optimistic outlook for the smartphone market. Samsung expects a recovery driven by stabilizing consumer sentiment, the expansion of AI products and services, and economic growth in emerging markets. This positive outlook allows Samsung to capitalize on its recent progress and continued investment in research and development, cementing its position as a leader in mobile technology.

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The deep dive: Key findings and potential implications

Based on the overall analysis of Samsung’s Q1 2024 earnings report, let’s dig into some key takeaways and explore the potential implications for the future:

1. Business with memory: Driving force

The significant turnaround in the memory business segment is a big positive for Samsung. The successful strategy of focusing on high value-added products such as HBM and DDR5 meets the growing demand for faster processing power and data storage in various sectors. This strategic shift not only meets current market needs, but also positions Samsung for future growth as technologies such as AI and 5G continue to develop.

However, the memory business is cyclical, which means that its performance can vary depending on market demands. Close monitoring of industry trends and continuous innovation in memory technology will be critical for Samsung to maintain this momentum.

2. Mobile eXperience (MX) Business: Adaptability in a Challenging Market

The MX division’s ability to maintain profitability despite a seasonally weak smartphone market highlights its adaptability. The success of the Galaxy S24 series underscores the importance of strong flagship product offerings in driving revenue.

However, the expected decline in smartphone shipments in Q2 poses a potential challenge. Samsung’s focus on replicating the AI ‚Äč‚Äčexperience of the Galaxy S24 in other flagship models is a strategic move to differentiate products and retain market share.

3. The rise of AI and emerging markets

Samsung’s commitment to continue investing in research and development, especially in AI, signifies the recognition of the transformative potential of this technology. As AI applications become more integrated into smartphones and other devices, Samsung’s investment could turn into a competitive advantage in the long run.

In addition, Samsung’s optimism for a market recovery in the second half, driven by economic growth in emerging markets, presents a promising opportunity. By adapting its product offerings and marketing strategies to these regions, Samsung can take advantage of this growth potential.

4. Geopolitical risks and component costs

Continued geopolitical instability and potential cost increases for key components pose significant challenges for Samsung. The MX division’s emphasis on operational optimization is a necessary step in mitigating the impact of these external factors. However, a delicate balance must be struck between reducing costs and maintaining product quality and innovation.

5. Long-term strategy: Balancing innovation and profitability

Samsung’s Q1 2024 earnings report highlights the importance of striking a balance between short-term profitability and long-term innovation. While maintaining operational efficiency is critical in the current environment, continued investment in research and development is essential for Samsung to maintain its technological leadership position.

Samsung’s focus on artificial intelligence and its efforts to expand into emerging markets demonstrate its commitment to supporting its business model in the future. By addressing these challenges and capitalizing on growth opportunities, Samsung is well positioned for continued success in the dynamic world of mobile technology.


Samsung’s Q1 2024 earnings report offers valuable insight into the company’s adaptability and strategic direction. While the memory business provides a solid foundation for current growth, long-term success depends on Samsung’s ability to capitalize on AI and emerging markets while addressing geopolitical risks and managing component costs. Samsung’s commitment to research and development and its focus on flagship products suggest that it is well on its way to achieving these goals.

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