Samsung posted its financial results for July-September 2024, in which both sales and operating profit improved year-on-year. The largest contributor was the DS division, which includes the memory, system LSI and foundry businesses. It saw a 78% increase in sales and a 200% increase in total profit to KRW 3.86 trillion.
The MX business, which sells Galaxy phones, tablets and accessories, reported a modest 2% rise in sales but a 14.5% decline in profit as the market was hit by global inflation.
| (All units in KRW/USD) | Q3 2024 | Q2 2024 | QoQ change | Q3 2023 | change from year to year |
| mobile experience sales |
30.52 trillion / 22.13 billion |
27.38 trillion/ 19.86 billion |
11% | 30.00 trillion/ 21.76 billion |
2% |
| mobile experience operating profit |
2.82 trillion / 2.04 billion |
2.23 trillion/ 1.61 billion |
26.5% | 3.30 trillion/ 2.39 billion |
-14.5% |
| total sales | 79.10 trillion/ 57.38 billion |
74.07 trillion/ 53.72 billion |
7% | 67.40 trillion/ 48.89 billion |
17% |
| total profit | 9.18 trillion/ 6.65 billion |
10.44 trillion/ 7.57 billion |
-12% | 2.43 trillion/ 1.76 billion |
277% |
Samsung revealed that smartphone demand increased only slightly during the third quarter. Sales numbers were high due to improved flagship models, and despite material costs, profits improved sequentially.
Expectations for the next quarter are that the market will grow due to the season, including the holiday season in Western Europe and the US – Thanksgiving, Black Friday and Cyber Monday deals, Christmas and New Year.
The memory business remained strong due to companies’ investments in AI and traditional servers. Some inventory adjustments affected mobile demand, leading to increases in channel inventory and readjustments in purchasing demand.
It is expected that the market trend will remain like this in future. However, geopolitical issues and stimulus packages may affect this; For example, China may decide to invest in local companies, and the United States may do the same, effectively hurting Samsung’s performance.
