South Korean tech giant reports $4.85bn profit during the first three months of 2024.
Samsung Electronics has reported a nearly 10-fold jump in first-quarter operating profit amid the recovery of its key memory chip business.
The tech giant, the flagship subsidiary of Samsung Group, South Korea’s largest family-controlled conglomerate, said that operating profit rose to 6.61 trillion won ($4.85bn) in the first three months of the year on the back of strong sales of its flagship Galaxy S24 smartphone and higher prices for memory semiconductors.
Overall revenue rose to 71.9 trillion won ($52 billion), an increase of nearly 13 percent.
The world’s biggest memory chip maker said revenues had also been helped by the weakness of the won against the dollar, which boosted earnings by about 0.3 trillion won.
“In the second half of 2024, business conditions are expected to remain positive with demand – mainly around generative AI – holding strong, despite continued volatility relating to macroeconomic trends and geopolitical issues,” the company said in a statement.
Samsung shares rose by 1.6 percent in morning trading, compared with a 0.5 percent rise in South Korea’s benchmark index.
Samsung’s strong financial results, which came in ahead of market expectations, follow a slump in memory chip sales amid a slowdown in the global economy.
Semiconductors are among the most important components of the global economy.
The wafer-thin integrated circuits are essential to most modern technology, used in everything from kitchen appliances and mobile phones to cars and weapons.