Samsung shared highly positive news during its Q1 2024 earnings, with the company generating an operating profit of $4.80 billion, which is an inconceivable 933 percent increase compared to its Q1 2023 results. While the Korean giant witnessed growth in nearly all business segments, its smartphone division made up the bulk of that profit, with the Galaxy S24 series likely the major contributor to this figure.
Adopting a dual-chipset approach and introducing Galaxy AI to the Galaxy S24 series were possible reasons for increased sales
With $4.80 billion in operating profit, Samsung’s financials revealed that its smartphone business brought in $2.54 billion, making up 53 percent of the total pocketed earnings for this quarter. The company revealed that mid-range smartphone sales were down, which only meant that the Galaxy S24 models were in high demand and primarily responsible for contributing to this incredible comeback. Keep in mind that in Q1 2023, Samsung’s operating profit dropped 96 percent, making it the first time in 14 years that the company took a financial beating of this magnitude.
Luckily, Samsung realized its mistakes and decided to turn things around, starting with the Galaxy S24 series. One of the biggest changes employed by the technology firm was sticking with a dual-chipset strategy by releasing the Exynos 2400 and Snapdragon 8 Gen 3 versions of its premium smartphone range in various regions. The company intends to maintain this practice next year with the Galaxy S25 by introducing Exynos 2500 and Snapdragon 8 Gen 4 versions in the future. By avoiding a smartphone launch exclusively featuring Qualcomm’s chipset, Samsung saved tremendously on silicon purchases alone.
In 2023, the company’s smartphone chipset bill was almost $9 billion when it released the Galaxy S23 family sporting just the Snapdragon 8 Gen 2. With the Snapdragon 8 Gen 4 expected to be more expensive than the Snapdragon 8 Gen 3, Samsung could be more motivated to reduce component costs by introducing additional Exynos 2500 versions. We should see further improvements regarding Galaxy AI, with Samsung rumored to partner with Google to introduce the latter’s second-generation Gemini update to the Galaxy S25 range.
With the success that Samsung is enjoying this quarter, the Korean behemoth has stated that the following quarter is going to be a tough one, but it will stick to its cost-competitiveness approach and is expected to come out strong once again.
