Samsung Electronics is reportedly poised for a large revenue enhance within the first quarter of 2024. In accordance with a report by information company Reuters, this surge is attributed to a big rebound in reminiscence chip costs, lifting earnings from a low base attributable to the earlier yr’s chip downturn.Analysts predict an working revenue of 5.7 trillion received ($4.24 billion), a close to nine-fold soar in comparison with the identical interval final yr.This could be Samsung’s strongest quarter since Q3 2022, marking a pointy turnaround from the business’s 2023 struggles.Here is a breakdown of the important thing elements driving this revenue surge:Reminiscence Chip Growth: The reminiscence chip division, historically Samsung’s money cow, is anticipated to report its first quarterly revenue in 5 quarters. That is fueled by a 20% enhance in DRAM chip costs and a 23-28% soar in NAND Flash chip costs.Low Base Impact: The weak chip demand within the first quarter of 2023 creates a decrease revenue base for comparability, amplifying the present quarter’s progress.Whereas the chip design and manufacturing segments stay unprofitable, restricted provide of lower-margin chips and purchaser restocking are boosting general reminiscence chip income.Samsung’s cellular enterprise, nevertheless, is anticipated to see a slight dip in income in comparison with final yr. Regardless of launching the AI-powered Galaxy S24 and an estimated 8% rise in smartphone shipments, the 30% enhance in common promoting costs may not totally offset the decline.In conclusion, Samsung is capitalizing on the surging reminiscence chip market, resulting in a big revenue soar for the primary quarter
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