Samsung makes Record of Revenue in Q1 This Year, High Demand for Memory Parts

South Korean electronics company Samsung has set a revenue record in the first quarter of this year. The company’s consolidated revenue in the first quarter was KRW 133.9 lakh crore (approximately Rs 8,00,000 crore). This is an increase of about 43 percent compared to the previous quarter. The operating profit of the company has also been the highest till date. However, its foundry business has declined. Samsung has said that the shortage of memory components may persist till next year.

In the first quarter, Samsung’s consolidated revenue was KRW 133.9 lakh crore and operating profit was KRW 57.2 lakh crore (about Rs 3,00,000 crore). The device solutions (DS) division, especially the memory components business, has contributed significantly to the company’s growth. The company is benefiting from the increasing demand related to Artificial Intelligence (AI) and being a technological leader in the memory components market. Samsung MX and Networks businesses contributed KRW 38.1 lakh crore (approximately Rs 2,04,000 crore) to consolidated revenue and KRW 2.8 lakh crore (approximately Rs 18,000 crore) operating profit, respectively.

Due to increase in demand for premium smartphones, the quarter-on-quarter sales of the company’s Device eXperience (DX) division have increased by about 19 percent. Samsung has reported that there has been a decline in its foundry business and display division. Seasonal weakness, expensive prices of memory parts and cost pressure are the major reasons behind this.

The company estimates that demand for memory parts will remain strong in the second half of this year due to AI infrastructure and services. Samsung’s visual displays and digital appliances business accounts for KRW 14.3 lakh crore in revenue and KRW 0.2 lakh crore (about Rs 1,200 crore) in operating profit. The company has said that its supply is less than the customer demand related to memory chips. Samsung estimates that this gap between demand and supply may increase. The company’s flagship devices and foldable in the next few months smartphones There are plans to launch. The market of foldable smartphones is increasing. Samsung has the highest share in this segment.