Samsung Electronics Reports Record Q2 Profit Driven by Semiconductor Boom
Seoul: Samsung Electronics announced a dramatic surge in its operating profit for the second quarter (Q2) of 2024, attributing the impressive performance to a robust semiconductor sector. The company’s operating profit soared to 10.44 trillion won ($7.54 billion), a remarkable increase of over 15 times from the 668.5 billion won recorded a year earlier. This marks Samsung’s first operating profit exceeding 10 trillion won in seven quarters, since the third quarter of 2022.
For the April-June period, Samsung’s sales rose by 23.4% year-on-year, reaching 74.06 trillion won, while its net profit surged 471% to 9.84 trillion won. The substantial growth in profits and sales was driven largely by strong performance in the semiconductor business, which earned 28.6 trillion won in sales and 6.45 trillion won in operating profit. This represents the first quarterly operating profit for Samsung’s flagship semiconductor division in over a year, following five consecutive quarters of losses.
The company also reported increased sales and shipments of its Galaxy S24 series, which has outpaced its predecessor, the Galaxy S23, in both the second quarter and the first half of the year. Samsung anticipates a continued rise in smartphone demand in the latter half of 2024, fueled by growing interest in premium products and innovations in artificial intelligence.
Samsung’s performance surpassed market expectations, with analysts predicting an average operating profit of 10.29 trillion won, according to a survey by Yonhap Infomax.
The company invested 8.05 trillion won in research and development and allocated 12.1 trillion won towards facility investment, including 9.9 trillion won specifically for its semiconductor sector.
In addition to its semiconductor success, Samsung’s TV business benefitted from global events such as the 2024 Paris Summer Olympics, while its home appliance segment showed signs of gradual recovery, driven by increased demand for air conditioners and new product offerings.
