Samsung Display is the unit that produces screens for smartphones including the iPhone. | Image credit-Samsung
Smartphone demand declined sequentially during the second quarter, especially in the premium end of the business. Despite this weakness, the Galaxy S24 line performed strongly. For the second half of the year, Samsung expects smartphone demand to rise on an annual basis with growing demand for AI and the release of new models with innovative features producing increased demand for premium handsets. Smartphone shipments are forecast to rise year-over-year during the third quarter which runs from July through September.
The company also sees demand rising for what it calls ecosystem products like smartwatches, smart rings, and tablets. Samsung will also look to hike revenue in this business segment by expanding sales of flagship smartphones and ecosystem products. The unit also plans to increase profitability “by optimizing product specifications, including component standardization and pursuing operational efficiencies.”
Sammy’s MX (Mobile Experience) and Networks unit posted revenue of 27.38 trillion Korean won ($19.97 billion USD) and 2.23 trillion Korean won in operating profits ($1.63 billion USD).
Samsung Display had quarterly revenue of $7.65 trillion Korean Won ($5.58 USD) and operating profits of 1.01 trillion Korean won ($736 million USD). The business unit is working to improve the power consumption, brightness, and the durability of its panels all while attempting to make these displays thinner.
Overall, Samsung reported Q2 2024 revenue of 74.07 trillion Korean won ($54 billion USD) with an operating profit of 10.44 trillion Korean won ($7.61 billion USD). Korean investors loved the report sending the stock up 2,900 Korean won ($2.11) or 3.58% to 83,900 Korean won per share ($61.15 USD).
