The performance of the South Korean tech giant Samsung can be quantified by comparing the profit figures for the first quarter of 2024 with the same period last year, and showing that profits have increased by as much as 931%. This blooming figure, which comes out to approximately 6.6 trillion won ($4.9 billion), really contrasts with analysts’ expectations and breathes new life into the company in the future.
The main trigger for an extraordinary boom? Combination of the various key factors. Firstly, there has been a recovery in the global market for semiconductors which accounts for a big share of Samsung’s revenue and is where the company is the world’s largest memory chip maker. The chip prices, which have risen by roughly 20% in the last year, have increased significantly this year from the pandemic doldrums, and they are now one of the largest revenue generators for the Samsung semiconductor division.
Moreover, the increasing amount of AI-based products is presenting Samsung with a unique opportunity in the form of a perfect storm. AI permeates different industries fuelling the demand for memory chips, and Samsung remains at the top of this game. This additional demand is creating a positive influence on the company’s profit margins at once.
Samsung is not depending only on the latest chips for its remarkable performance. It is also a legend in the smartphone and television industries. Even though the data on specific sectors isn’t available yet, the experts share their views about the increase in the card performance in general and, thus, strengthening the financial position of Samsung.
On the other hand, Samsung’s unofficial financial report due earlier, on April 30th, is already setting the tone for the imminent tech boom among industry players. However, this announcement is a source of relief after several months of uncertainty owing to the supply chain disruptions caused by the pandemic and the chip shortages.
The success of Samsung is built on many pillars. Being the leader in the chips market is important, more so with all the other semiconductor rivals such as TSMC intensifying the competition in the industry. Besides, the AI market will also be an area of focus as the company strives to push the boundaries with innovative chip technologies to sustain growth.
To be exhaustive, the appearance of Samsung in the smartphone industry warrants special consideration. On the other hand, the firm is challenging Apple and Chinese competitors like Huawei and Xiaomi. It will be imperative to maintain this share of the market and improve on new features to stay ahead.
