You are currently viewing Samsung set to report greatest revenue after 2022, two elements driving the numbers

Samsung set to report greatest revenue after 2022, two elements driving the numbers

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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