Galaxy S24 boosts revenue for Samsung mobile division

During a period of slower sales in the IT device market, including PCs and smartphones, Samsung Electronics experienced a significant comeback in the first quarter, mainly due to the success of its new artificial intelligence (AI) smartphone, the Galaxy S24 series.

Samsung Electronics disclosed its final first-quarter results on Tuesday, revealing that its Mobile Experience (MX) and Networks division achieved consolidated revenues of 33.5 trillion won and operating profits of 3.5 trillion won. Although these figures represent a 5-percent decline in revenue and an 11-percent decrease in operating profit year-on-year, they mark a significant upswing of 34 percent and 28.5 percent, respectively, from the preceding quarter.

During the first quarter, the MX division's revenue and operating profit comprised 46.5 percent and 53 percent of Samsung Electronics' overall results, respectively. This division notably bolstered the company's performance when the semiconductor (DS) division emerged from an economic downturn. "In the first quarter, we shipped 60 million smartphones and 7 million tablets, achieving an average selling price (ASP) of $336 for smartphones," remarked Daniel Araujo, senior vice president and head of Samsung Electronics' MX division, during a conference call. The ASP saw a quarter-on-quarter increase of approximately 30 percent.

Samsung Electronics credited the strong sales growth to the AI features embedded in the Galaxy S24, which were widely embraced by consumers. However, the company expects a drop in average selling prices during the second quarter because of the off-season, marked by fewer new product launches and reduced smartphone shipments, which are a major revenue driver.


Do-Young Kwak now@donga.com