Today, Samsung revealed its earnings forecast for Q1 2024, projecting sales to be in the range of KRW 70 to 72 trillion ($51-$53 billion). The most noteworthy aspect is the operating profit, estimated to be between KRW 6.5 and 6.7 trillion (almost $5 billion) – marking a tenfold increase compared to the same period last year.
| (all figures in KRW / USD) |
Q1 2024 Earnings Forecast |
Q3 2023 | QoQ Change | Q1 2023 | YoY Change |
| Sales | 71 trillion / 52 billion |
67.78 trillion / 50.09 billion |
4.75% | 63.75 trillion / 47.11 billion |
11.3% |
| Operating Profit | 6.6 trillion / 5 billion |
2.82 trillion / 2.08 billion |
134% | 0.64 trillion / 470 million |
931% |
The significant surge in profit is attributed to the rising demand for high-bandwidth memory (HBM) utilized in AI chipsets, as reported by Reuters. Additionally, experts suggest that the inventory valuation of NAND chips might have improved, impacting profit margins positively.
Another contributing factor could be the positive reception to the on-device AI feature of the Galaxy S24. While details are scarce, the increase in sales of these flagship phones likely had a beneficial impact on profits.
The earnings guidance serves as Samsung’s final estimate provided to Korean authorities and regulators. The complete report is scheduled to be released on the last Thursday of this month, offering a comprehensive breakdown of profit and sales across various divisions.
