Samsung expects profits to jump 10-fold on last year

Samsung said it expects profits for the first three months of 2024 to be more than 10 times higher than the same period last year.

The South Korea-based technology giant said it estimates operating profit for the first quarter of the year to be approximately 6.6 trillion Korean won (£3.9bn), compared with 0.6 trillion (£351m) for the same quarter last year.

The estimate comes as prices of computer chips recover from a post-pandemic slump and demand increases, driven by the rise of artificial intelligence-powered products, which require additional computing power.

Samsung is one of the world’s largest manufacturer of computer memory chips or semiconductors, alongside its huge smartphone, wider electronics and home appliances businesses.

The firm’s semiconductor business is also traditionally the biggest revenue earner for the company, and demand for chips is expected to remain strong in the year to come as the rise of AI technologies continues.

The company launched its latest flagship smartphone range, the S24 series, in January, which is likely to further boost the firm’s revenue.

Samsung is scheduled to release a detailed financial report on April 30.

Ben Barringer, technology analyst at Quilter Cheviot said a “noticeable uptick” in the chip market was a key factor in the firm’s rising profits.

“Another key factor contributing to Samsung’s improved performance is the overall recovery in the consumer electronics and smartphone markets,” he said.

“A standout development in this arena is the launch of the Galaxy S24, Samsung’s first AI-enabled smartphone.

This innovation highlights Samsung’s commitment to integrating cutting-edge AI capabilities into its consumer products.

“It’s worth noting that these are just the flash numbers. We can expect a more comprehensive breakdown of their financial performance when the full figures are released on April 30.

“This upcoming report will likely offer further insights into how Samsung’s strategic focus on AI and memory technologies is shaping its market position and financial trajectory.”