Samsung Electronics posts strong profit in Q2, smartphone segment cools down
Samsung Electronics disclosed higher-than-expected sales and operating profit for the second quarter on Wednesday, citing continued strong demand for its cutting-edge memory chips, which are essential for AI training.
Samsung’s operating profit increased by 1,458.2% during the June quarter compared to a year earlier, while revenue increased by 23.42%. Revenue: 73.74 trillion Korean won versus 74.07 trillion Korean won, or almost $53.5 billion.
The South Korean behemoth claimed good performance because of clients’ growing investments in artificial intelligence and their strong demand for traditional memory, such as normal dynamic random-access memory, and high bandwidth.
Samsung stated demand for server AI is expected to remain high for server products like HBM, server DRAM, and SSD in the second half. A semiconductor-based storage device is referred to as an SD, or solid-state drive.
The company went on to say that increasing production to fulfill the demand for server DRAM and HBM could further limit the availability of traditional memory chips.
The company stated that it intends to boost capacity in the second half of the year to increase demand for AI by boosting sales of HBM3E, the most recent AI memory product. Additionally, it will increase sales of SSDs, which are now in high demand for AI servers.
The company announced it will distribute a dividend for the second quarter of 361 won to each common and preferred share.
“The total amount distributed per quarter amounts to approximately 2.45 trillion won, which will be paid near the end of August.” Shares of Samsung increased by 1.4%. Wednesday AM The “base effect of launches of new models” in the first quarter was a major factor in the second quarter’s fall in smartphone sales. However, according to Samsung, there is still a lot of demand for the Galaxy S24 series.
The South Korean-based business stated demand decreased sequentially in the seasonally weak quarter, particularly in the premium segment,” and anticipates growth in the premium segment in the second half, with a potential slowdown in the mass segment.
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