Industry leader Samsung recorded significant growth again in the first quarter of 2024. Unsplash
The memory chip market leader Samsung was plagued by sluggish demand for a long time. Now rising prices are giving the South Korean company a strong boost.
In direct comparison with the previous year, the company increased its profit in the first quarter approximately tenfold.
Oversupply and sluggish demand had long plagued the chip industry. Now the industry seems to be recovering.
Thanks to the renewed demand for memory chips, industry leader Samsung recorded significant growth again in the first quarter of 2024. In its earnings outlook for the months of January to March, the South Korean electronics company assumes that operating profit has increased more than tenfold year-on-year.
The profit from the core businesses is expected to be 6.6 trillion won, or around 4.5 billion euros. The company announced this in a stock exchange announcement on Friday. In the first quarter of last year it was 640 billion won, or around 436 million euros.
Samsung expects sales to increase by 11.4 percent to 71 trillion won, or 48.5 billion euros. Traditionally, the group only publishes more precise figures at a later date.
Samsung was plagued by a chip oversupply for a long time
Samsung is also the market leader in TV sets. When it comes to smartphones, however, the South Koreans were displaced by Apple as the world‘s largest smartphone provider last year, according to calculations by market researchers.
Oversupply and sluggish demand had long plagued the chip industry. However, Samsung had already noted signs of recovery in the fourth quarter of last year. Samsung also expects the recovery to continue this year. The industry benefits primarily from rising prices as a result of the boom in artificial intelligence.