Samsung Electronics Announces Results for Third Quarter of 2024 Instawireless

Samsung Electronics recently published its third-quarter financial results for 2024, revealing revenue of KRW 79.1 trillion and an operating profit of KRW 9.18 trillion. This quarter’s performance, ending September 30, showed a revenue increase of 7% from Q2, fueled by new smartphone launches and rising high-end memory product sales. However, a slight decline in operating profit resulted from one-off expenses, notably in the Device Solutions (DS) Division. This quarter was also marked by a negative currency impact of KRW 0.5 trillion on operating profits due to the strong Korean won against the U.S. dollar. Looking forward, Samsung plans to emphasize its competitive edge through AI technology integration, premium products, and advanced component solutions, focusing heavily on sectors like high-bandwidth memory (HBM) and 2nm Gate-All-Around (GAA) process technology.

Samsung Electronics Announces Results for Third Quarter of 2024 Instawireless

Q3 Financial Highlights and Strategic Divisions’ Performance

Samsung’s third-quarter report highlights growth across several business units, from memory and mobile displays to system LSI and foundry. Each division's strategic direction aims to capitalize on current demand trends, particularly in high-demand areas like AI computing, high-performance memory products, and premium mobile and display technology.

Device Solutions (DS) Division

The DS Division posted KRW 29.27 trillion that is estimated in consolidated revenue, with an operating profit best one of KRW 3.86 trillion. This division's performance was driven by increased demand for server and AI-focused memory products like HBM and DDR5. Despite some currency-related and one-off cost impacts, DS Division saw a strong revenue boost, especially in server SSD and DRAM solutions. Key factors contributing to DS Division's results include: Revenue Growth in Memory Business: Samsung focused on HBM and server SSDs, responding to the strong demand from data centers and technology firms, which contributed to robust revenue growth in the memory business.

Inventory Adjustments: Samsung addressed inventory levels by depleting legacy products, focusing on enhancing its product mix and responding to shifts in demand, particularly for AI and data center applications.

System LSI Business

The System LSI Business reported moderate growth, although earnings were constrained by one-off costs. The company saw an uptick in system-on-chip (SoC) shipments, primarily due to their adoption in flagship models. Demand for display driver ICs (DDI) also increased, supported by new models. However, challenges arose from inventory adjustments in image sensor sales, which affected the unit’s earnings slightly.

Samsung’s fourth-quarter outlook includes plans to bolster Exynos 2400 production, leveraging increasing client adoption, though softer demand for image sensors remains a concern. Samsung projects further SoC development, aiming to enhance its product offerings for flagship models and expand its portfolio with 2nm products.

Foundry Business

Earnings in the Foundry Business faced some declines this quarter due to one-off costs. However, notable milestones included the successful release of the 2nm GAA process design kit (PDK), which enables customers to design advanced products. The Foundry Business achieved order targets in sub-5nm technologies, furthering its strategic focus on AI and high-performance computing (HPC).

The company’s fourth-quarter strategy emphasizes customer acquisition through improved process maturity in 2nm GAA technology. Samsung’s foundry unit aims to continue development of innovative technologies and infrastructures to capitalize on expanding HPC and AI-related demands.

Samsung Electronics Announces Results for Third Quarter of 2024 Instawireless

Samsung Display Corporation (SDC)

SDC posted consolidated revenue of KRW 8.0 trillion and an operating profit of KRW 1.51 trillion. This growth came as a result of Samsung’s flagship mobile display products, which were bolstered by successful launches from key clients. The large display sector experienced slightly weaker performance, though improvements in TV and monitor sales volumes from Q2 offset potential losses. For Q4, SDC projects steady demand for flagship models and anticipates growth in the IT and automotive display markets. Samsung also aims to meet rising demand for QD-OLED panels to strengthen its position in the premium TV market and plans to launch high-resolution monitors with varied refresh rates to target the gaming and consumer segments.

Mobile eXperience (MX) Business and Networks

The MX and Networks Business achieved consolidated revenue of KRW 30.52 trillion and an operating profit of KRW 2.82 trillion. Samsung’s new smartphones, tablets, and wearables underpinned this growth, especially in the premium product category. Flagship smartphone models such as the Galaxy S24 series and foldable models contributed significantly to this quarter’s performance, with double-digit revenue growth across high-end segments.

In Q4, Samsung foresees seasonal growth in smartphone demand and plans to boost flagship model sales, while also expanding its wearable and tablet sales during the holiday season. The MX Division expects global smartphone market growth to resume gradually in 2025, aided by declining inflation and a more stable macroeconomic environment.

Visual Display and Digital Appliances

The Visual Display and Digital Appliances that are daily used Business recorded KRW 14.14 trillion in revenue, alongside an operating profit of appliances of KRW 0.53 trillion. Profitability improvements stemmed from focusing on Neo QLED, OLED, and large-screen models. Service business growth also contributed to profitability.

For Q4, Samsung’s display business expects demand to peak due to year-end holiday sales, with plans to reinforce strategic retail partnerships. The focus will remain on AI-driven premium TVs, including Neo QLED and OLED, emphasizing features like picture and sound quality enhancements through SmartThings integration.

Strategic Outlook for 2025 Focusing on Premium Products and AI

Samsung's strategic priorities for 2025 encompass maintaining leadership in premium segments and driving AI integration across all product lines, emphasizing user connectivity, personalization, and security. These efforts will be channeled through the SmartThings platform, which boasts a global user base of 360 million. As Samsung seeks to define the "AI era for the home," it aims to enhance not only consumer convenience but also energy efficiency, security, and overall well-being.

AI Integration in Consumer Products

Samsung’s investment in AI is grounded in creating seamless, intuitive user experiences across multiple products. Leveraging spatial intelligence and product personalization, Samsung’s AI initiatives aim to.

  • Enhance Security and Device Connectivity: Samsung products will integrate advanced security features, allowing consumers to connect devices effortlessly and securely.
  • Promote Energy Efficiency and User Wellness: Through AI, Samsung products will optimize energy use and encourage healthier, more sustainable living.

Memory Business Expansion

The Memory Business is expected to remain robust in 2025, supported by growing AI and data center investments. Samsung plans to expand DRAM sales, particularly high-bandwidth memory (HBM3E) and high-density DDR5 modules for servers and mobile. For NAND, the company anticipates demand for quad-level cell (QLC) products, with 64TB and 128TB SSD solutions primed to dominate.

System LSI and Foundry Leadership

The System LSI Business will focus on capturing market opportunities in SoCs and camera technologies for mobile devices, while further expanding its offerings with 2nm product innovations. In tandem, the Foundry Business aims to secure double-digit growth by improving 2nm GAA technology yields and further developing HBM buffer dies to target AI and HPC customers.

Visual Display and Digital Appliances Vision

Samsung plans to further distinguish its QLED and OLED products, adding AI-driven functionalities to optimize image quality, user experience, and SmartThings ecosystem integration. Samsung’s service platform will expand, with Samsung TV Plus offering more content and advertising opportunities.

Conclusion Samsung’s Commitment to Innovation and Market Leadership

Samsung Electronics Announces Results for Third Quarter of 2024 Instawireless

Samsung’s Q3 2024 results and forward-looking strategy highlight its dedication to sustaining technological leadership, especially in premium products and AI integration. By strategically positioning its offerings in memory, display, mobile, and digital appliances, Samsung is well-prepared to navigate macroeconomic uncertainties while meeting evolving consumer demands. With anticipated growth in the demand for high-performance computing, AI servers, and connected consumer experiences, Samsung’s extensive product portfolio and commitment to premium quality place it at the forefront of the electronics industry. As the company progresses into 2025, its strategic vision remains focused on advancing technology to deliver unparalleled user experiences, furthering its global leadership in the ever-evolving tech landscape.

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