April 30th 2024.
The bustling city of Seoul was buzzing with excitement on Tuesday as Samsung Electronics announced a remarkable 10-fold increase in operating profit for the last quarter. This astounding growth was attributed to the company's innovative use of artificial intelligence technologies, which has caused a surge in demand for their computer memory chips.
The South Korean tech giant revealed that its operating profit for the Jan-March quarter reached 6.6 trillion won, a significant jump from the 640 billion won earned during the same period last year. This remarkable achievement was accompanied by a 13% rise in revenue, totaling 71.9 trillion won. Samsung attributed this growth to the higher prices for memory chips and the impressive sales of their flagship Galaxy S24 smartphones.
The company also announced that its semiconductor business earned 1.91 trillion won in operating profit, marking the division's first quarterly profit since the fourth quarter of 2022. This is a significant milestone for Samsung as the chip market continues to recover from a cyclical slump, worsened by the COVID-19 pandemic and global trade tensions.
Looking ahead, Samsung is optimistic about the future of the memory chip market, projecting it to remain strong in the coming months. This is due to the increasing demand for AI chips, driven by the expansion of generative AI technologies. The company disclosed that it has started mass production of its latest HBM chips, the 8-layer HBM3E, and plans to introduce the 12-layer version in the second quarter.
According to Samsung, the business conditions in the second half of 2024 are expected to remain positive, despite the ongoing volatility in macroeconomic trends and geopolitical issues. This is mainly due to the sustained demand for generative AI, which is set to drive growth in the market.
In the world of smartphones, Samsung will continue to focus on the success of its flagship device, the Galaxy S24. This cutting-edge device is equipped with various AI features, including live translation during phone calls in 13 languages and 17 dialects. The company plans to expand AI features to other mobile devices, anticipating that the technologies will fuel growth in the smartphone market as global consumer spending improves.
In conclusion, Samsung's remarkable performance in the last quarter has solidified its position as a leader in the tech industry. With their groundbreaking use of AI technologies, the company is poised for continued success and growth in the coming months.
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[Generative AI is experimental.]
