The Galaxy S24 series (Image courtesy of Yonhap)
SEOUL, May 1 (Korea Bizwire) – Despite the global smartphone market’s contraction, Samsung Electronics’ mobile experience (MX) division reported robust first-quarter earnings, buoyed by the strong sales performance of its latest artificial intelligence (AI)-powered flagship, the Galaxy S24 series.
According to Samsung’s earnings release on April 30, the company’s MX and Networks divisions posted consolidated revenue of 33.5 trillion won and operating profit of 3.5 trillion won for the January-March period.
While revenue declined 5% and operating profit fell 11% compared to the same quarter last year, the figures represent a 34% and 28.5% increase, respectively, over the previous quarter.
Notably, the MX division accounted for 46.5% of Samsung’s total revenue and a staggering 53% of its operating profit, effectively carrying the company’s performance as the semiconductor unit continues its recovery.
During the earnings call, Daniel Araujo, senior vice president of Samsung’s MX business, revealed that first-quarter smartphone and tablet shipments reached 60 million and 7 million units, respectively, while the average selling price (ASP) for smartphones stood at $336.
The robust results are largely attributed to the AI capabilities integrated into the Galaxy S24 series, including real-time translation, note-taking assistance, image editing powered by generative AI, and the Circle to Search feature that triggers web searches by drawing a circle on the screen.
Samsung stated that these AI-powered features drove double-digit operating profit margins and contributed to overall revenue growth.
However, the company anticipates a decline in smartphone shipments and average selling prices in the typically slower second quarter, although tablet shipments are expected to remain stable.
Samsung plans to maintain its focus on flagship product sales, leveraging its AI capabilities exemplified by the Galaxy S24, while pursuing operational efficiency to sustain profitability. Additionally, the company remains committed to investing in research and development (R&D), including AI, despite the challenging market conditions.
The second half of the year holds promise for Samsung, with the anticipated launch of the AI-enhanced Galaxy Z Fold 6 and Galaxy Z Flip 6 foldable devices, seen as catalysts for broader foldable adoption.
The Galaxy Ring (Image courtesy of Yonhap)
Furthermore, Samsung is poised to introduce the Galaxy Ring, a new wearable form factor expected to enhance healthcare applications’ accuracy when paired with the upcoming Galaxy Watch 7.
“For tablets, we will offer Galaxy AI features on the Tab S9 series, and for wearables, we plan to strengthen the Galaxy ecosystem experience through expanded sales of new models in the second half,” Araujo stated. “With the Galaxy Ring, we expect to improve customers’ overall daily health management experience, including sleep monitoring.”
He added, “We will continue to invest in R&D and AI to further expand and enhance Galaxy AI capabilities, ensuring our readiness for the future.”
Meanwhile, industry speculation suggests that Samsung may hold its next Galaxy Unpacked event on July 10 in Paris, coinciding with the Summer Olympics to capture global attention.
The official date for the Unpacked event is typically announced about a month in advance.
Kevin Lee (kevinlee@koreabizwire.com)
