AI-driven demand boosts Samsung’s operating profit by 933%
Samsung reported a substantial 933% increase in its first-quarter operating profit, driven by strong demand for Artificial Intelligence that boosted memory chip prices.
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Samsung‘s revenue reached 71.92 trillion Korean won (approximately $52.3 billion), surpassing the 71.04 trillion won ($51.52 billion) forecast by the London Stock Exchange Group (LSEG). The operating profit also exceeded expectations, amounting to 6.61 trillion won (about $4.79 billion) compared to the anticipated 5.94 trillion won. This resulted in a 12.81% increase in revenue from the previous year and a 932.8% surge in operating profit.
Samsung‘s semiconductor business, a key profit center, turned a profit of 1.91 trillion won in the March quarter, recovering from a 4.58 trillion won loss in the same period last year. This is the division’s first profit since the third quarter of 2022.
Samsung remains the world’s top manufacturer of dynamic random-access memory chips (DRAM), widely used in consumer electronics such as smartphones and computers.
The company posted KRW 71.92 trillion in consolidated revenue on the back of strong sales of flagship Galaxy S24 smartphones and higher prices for memory semiconductors. Operating profit increased to KRW 6.61 trillion as the Memory Business returned to profit by addressing demand for high value-added products.
Despite global economic uncertainties and geopolitical tensions, Samsung anticipates continued strong demand for generative AI and stable mobile demand in the upcoming quarter.
The company has also started mass production of advanced memory products to meet AI-related demand and is focusing on enhancing cost competitiveness across its operations to sustain profitability.
To meet AI demand, Samsung started mass producing HBM3E 8H and V9 NAND in April. It plans to mass produce HBM3E 12H products and a 128GB product based on 1b nanometer 32GB DDR5 within the second quarter.
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Saudi Arabia ranked first among countries for the non-oil exports of national origin with BD201 million (22%)
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Bahrain’s non-oil exports of national origin decreased by 6% to BD894 million ($2.37 billion) in Q2 2024 compared to the same period in 2023. The top 10 countries accounted for 64% of the total export value.
According to the Information & eGovernment Authority (iGA) in its Q2 2024 Foreign Trade report, Saudi Arabia was the leading destination for these exports, totaling BD201 million (22%). The US followed with BD75 million (8.4%), and the UAE with BD73 million (8.2%).
Unwrought aluminum alloys were the top exported product in Q2 2024, amounting to BD267 million (30%), followed by agglomerated iron ores and concentrates alloyed at BD159 million (18%) and non-alloyed aluminum wire at BD49 million (5%).
Non-oil re-exports
Non-oil re-exports increased by 4% to reach BD206 million during Q2 2024, compared to BD198 million for same quarter in 2023. The top 10 countries accounted for 86% of the re-exported value. The UAE ranked first with BD58 million (28%) followed by Saudi Arabia with BD39 million (19%) and UK with BD17 million (8%).
As per the report, turbo-jets worth BD65 million (32%) were the top product re-exported from Bahrain, followed by private cars with BD11 million (5%) and four-wheel drive with BD9 million (4%).
The value of non-oil imports has decreased by 4% reaching to BD1.41 billion in Q2 2024 in comparison with BD1.47 billion for same quarter in 2023. The top 10 countries for imports recorded 68% of the total value of imports.
China Bahrain’s biggest importer
China ranked first for imports to Bahrain, with a total of BD191 million (14%), followed by Brazil with BD157 million (11%) and Australia with BD112 million (8%).
Non-agglomerated iron ores and concentrates were the top product imported to Bahrain worth BD200 million (14%), followed by other aluminum oxide with BD101 million (7%) and parts for aircraft engines with BD41 million (3%).
As for the trade balance, which represents the difference between exports and imports, the deficit logged was BD310 million in Q2 2024 compared to BD322 million in Q2 2023.
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