Demand for Samsung smartphones declined in the second quarter of 2024, the company revealed in its latest financial report. However, the Galaxy S24 series saw strong sales between April and June, achieving double-digit growth in both shipments and revenue (for Q2 and H1) compared to the Galaxy S23 lineup.
Full financial results showed that operating profit rose a massive 1,458% year-on-year, driven by rising demand for AI memory chips.
| (All units in KRW/USD) | Q2 2024 | Q1 2024 | quarter-on-quarter change | Q2 2023 | Year-on-year changes |
| Mobile Experience Sale |
27.38 trillion / 19.95 billion |
33.53 trillion / 24.42 Billion |
-18.3% | 25.55 trillion / 18.61 billion |
7.1% |
| Mobile Experience operating profit |
2.23 trillion / 1.62 billion |
3.51 trillion / 2.55 billion |
-36.3% | 3.04 trillion / 2.21 billion |
-26.6% |
| gross sales | 74.07 trillion / 53.96 billion |
71.92 trillion / 52.39 billion |
3% | 60.01 trillion / 43.72 Billion |
23.4% |
| total profit | 10.44 trillion / 7.60 Billion |
6.61 trillion / 4.81 billion |
58% | 0.67 trillion / 0.48 billion |
1,458% |
Samsung said the quarter was seasonally weak, particularly in the premium segment, and that sales declined. The Galaxy S24 flagship managed to save the day, and despite the quarterly decline in sales and profit, the Mobile Experience division’s annual sales results grew by 8%.
For the second half of 2024, the expectation is that the premium segment will grow, but the mass segment will decline. Samsung predicts growth in ecosystem products, including tablets, watches, and TWS. This means we are likely to see an increase in sales of the Galaxy Tab S10, Galaxy Watch6, and Buds3 devices.
The company has also promised Galaxy AI in tablets with the Tab S9 series, an experience that is expected to drive Samsung’s sales in the premium segment.
Samsung Galaxy S24, Galaxy S24+, and Galaxy S24 Ultra
Looking at the bigger picture, expanding AI investments resulted in strong demand for HBM, traditional DRAM, and SSD. For the rest of 2024, server AI demand is expected to remain strong across all product lines, with HBM and server DRAM production increasing.
