The Korean firm ‘Samsung’ had gone through a tough time. Then it took a countable step called ‘Galaxy AI’ that turned out to be difficult to settle down. Now the giant expects a massive 15x increase in operating profit for Q2 2024, driven by boosting sales of memory chips.
Samsung Electronics revealed its rough earnings statistics for the second quarter of 2024 earlier today. It estimates its revenue to be around KRW 74 trillion, which is approximately $53.64 billion. Whereas the operating profit could be around KRW 10.4 trillion, nearly $7.53 billion,.
The Q2 2024 profit of Samsung increased beyond expectations, and the key reason behind this appears to be the surge in memory chip prices and sales. This 15-fold increase is far beyond the predictions of analysts and marks one of the most profitable quarters since Q3 2022. By the end of this month, the giant will reveal the exact metrics and break down the revenue and profit figures by division.
It seems that most of this sudden increase in profit can be attributed to sales of memory chips, for instance, high-bandwidth memory (HBM), a vital component of AI accelerators. The brand boosted the price of both DRAM and NAND flash chips in Q2 2024, and DRAM chip prices rose by 13% to 18%, whereas NAND flash chip prices experienced a larger increase of 15% to 20%.
Somewhere, Samsung is trailing behind SK Hynix in HBM memory chips. The Korean giant is also facing a three-day strike by its unionized workers over a pay dispute, which will start on Monday. Over 28,000 workers plan to stage a walkout. Earlier this year, Samsung debuted the Galaxy S24 series, which broke down the sales record of its predecessor.
