Sales of Samsung mobile sales are up as the business which is undergoing another transformation period delivers historic high revenue for the third quarter of 2024 despite problems in their chip business with the division reporting a 40% fall in sales as they battle for a position in the AI processor market.
The semiconductor unit reported third-quarter operating profit of US$2.8 billion, down 40% from the previous quarter.
the Device eXperience (DX) division responsible for the Galaxy range of smartphones and tablets, reported A$49.713 billion dollars in revenue globally.
this was up 2% year-over-year, though operating profit fell by 9.7% due to heavy retail discounting.
Contributing to the growth were new smartphone, tablet, and wearable sales.
TV’s and visual display sales were also up driven by strong sales of Neo QLED, OLED, large TVs, and increased service revenue which includes revenue from the sale of captured data from their consumer PC’s.
The Digital Appliances division also showed improvement, primarily due to increased sales of “Bespoke AI” products.
Harman achieved revenue of A$3.9 billion and an operating profit of A397M in Q3, bolstered by consumer audio sales and an improved cost structure.Samsung Display also delivered a profit after small and medium-sized panel sales improved due to the launch of new smartphones by key customers such as Appl, and large panel sales rose with increased demand for TVs and monitors.Overall Samsung Electronics delivered US$57.35 billion in revenues and operating profit of US$6.67 billion in the last quarter.
The company surpassed its previous revenue record set in Q1 2022 at US$55.6 billion in the same period Compared last year, revenue and operating profit grew by 17.4 percent and 222.7 percent, respectively, propelled by an improved semiconductor market rebounding from last year’s severe downturn, alongside strong sales in strategic smartphone and TV markets.
Exchange rates were also a key variable in third-quarter performance, with the stronger won negatively impacting overall operating profit by about 500 billion won.
Samsung Electronics expects growth in the semiconductor sector in Q4, although overall growth may be limited due to weaker performance in finished product businesses.
The DS division plans to enhance its portfolio with high-value memory products and advanced technology, while the DX division aims to boost profitability through premium product sales and AI strategy reinforcement.
The business that is undergoing a management shakeup is expected to deliver an extensive range of new products at CES 2025 in Las Vegas.
