Samsung Q3 2024 Revenue Report
Samsung Electronics has released its financial results for the third quarter of 2024 (July to September), revealing a notable increase in both sales and operating profit compared to the previous year. The financial performance was significantly bolstered by the company’s Device Solutions (DS) division, which includes memory, system LSI, and foundry businesses. In contrast, the Mobile eXperience (MX) division, responsible for Galaxy phones, tablets, and accessories, experienced modest sales growth but faced challenges regarding profitability due to broader market conditions.
Financial Highlights
In Q3 2024, Samsung achieved total sales of 79.10 trillion KRW (approximately 57.38 billion USD), representing a 17% increase year-over-year. Operating profit for the quarter reached 9.18 trillion KRW (about 6.65 billion USD), reflecting a 12% decline compared to the previous quarter but an impressive 277% increase compared to the same period last year.
Here’s a detailed breakdown of the key financial figures:
| (all units in KRW / USD) | Q3 2024 | Q2 2024 | QoQ Change | Q3 2023 | YoY Change |
| Mobile eXperience Sales |
30.52 trillion / 22.13 billion |
27.38 trillion / 19.86 billion |
11% | 30.00 trillion / 21.76 billion |
2% |
| Mobile eXperience Operating Profit |
2.82 trillion / 2.04 billion |
2.23 trillion / 1.61 billion |
26.5% | 3.30 trillion / 2.39 billion |
-14.5% |
| Total sales | 79.10 trillion / 57.38 billion |
74.07 trillion / 53.72 billion |
7% | 67.40 trillion / 48.89 billion |
17% |
| Total profit | 9.18 trillion / 6.65 billion |
10.44 trillion / 7.57 billion |
-12% | 2.43 trillion / 1.76 billion |
277% |
Performance by Business Segment
The DS division emerged as a significant driver of Samsung’s financial success, posting a remarkable 78% increase in sales and a staggering 200% increase in profit, totaling 3.86 trillion KRW. This growth is largely attributed to heightened demand for memory chips, spurred by investments in artificial intelligence and infrastructure for conventional servers. The increasing reliance on data storage and processing capabilities in various sectors has reinforced the demand for Samsung’s semiconductor products.
On the other hand, the MX division reported a 2% increase in sales, amounting to 30.52 trillion KRW. Despite this modest growth, the division faced a 14.5% decline in operating profit, which fell to 2.82 trillion KRW. This downturn can be traced to multiple factors, including global inflation, which has constrained consumer spending power and affected overall market demand for smartphones and accessories. The increase in material costs has also played a role in squeezing margins.
Despite the sluggish demand, Samsung noted that sales figures were positively impacted by the successful launch of new flagship models. The company’s strategic pricing and marketing efforts helped improve sales numbers, demonstrating resilience even amidst challenging market conditions.
Market Outlook
Looking ahead, Samsung’s outlook for the upcoming quarter remains cautiously optimistic. The company expects to see growth driven by seasonal demand, particularly during the holiday shopping season in Western Europe and the U.S. Key retail events such as Thanksgiving, Black Friday, Cyber Monday, and Christmas typically boost consumer electronics sales, and Samsung aims to capitalize on this trend.
However, potential geopolitical issues and economic stimuli from various governments could influence market dynamics. For instance, if China decides to invest heavily in local technology companies, or if the U.S. implements protective measures for its tech sector, Samsung’s competitive position might be impacted. These factors underscore the complexities of the global market landscape in which Samsung operates.
Conclusion
Samsung’s Q3 2024 financial results highlight the company’s ability to navigate a challenging economic environment while achieving significant growth in certain segments. The DS division’s performance underscores the company’s strength in semiconductor technology, which is critical for supporting various industries, including AI and cloud computing.
While the MX division faces hurdles in profitability, the modest growth in smartphone sales indicates ongoing demand for Samsung’s flagship devices. As the company prepares for the holiday season, it remains well-positioned to leverage increased consumer spending, although it must stay vigilant regarding external factors that could impact its performance. Overall, Samsung’s strong financial footing and innovative product offerings suggest that it will continue to be a key player in the global technology market.