Samsung has reported its earnings for Q3 2024 that ended September 30, 2024 in which the company posted 79.1 trillion won (USD 57.34 billion approx.) consolidated revenue, up 17.35% YoY, and up 6.79% QoQ, slightly above its own expectations.
It made an operating profit of 9.18 trillion won (USD 6.65 billion), up 277.77% YoY, but down 12% QoQ, largely due to one-off costs, including the provision of incentives in the Device Solutions (DS) Division, said Samsung.
Samsung MX (Mobile eXperience) in Q3 2024
The MX and Networks businesses posted 30.52 trillion won in consolidated revenue, up 1.73% YoY. The division posted 2.82 trillion won in operating profit, down 14.54% YoY and up 26.45% QoQ.
Although global inflation continued to dampen consumer spending and limit market growth for smartphones, MX Business achieved sequential revenue and operating profit growth.
This success was driven by new product launches across smartphones, tablets, and wearables, with a strategic focus on flagship models that led to increased sales. Despite higher material costs associated with enhanced product specifications, profitability neared double digits.
Samsung MX Q4 2024 and 2025 expectations
The smartphone market is predicted to experience sequential growth in the fourth quarter due to seasonal factors. However, the mass market segment will likely face increased competition due to rising demand, especially in emerging markets.
MX Business plans to maintain strong sales of its AI smartphones, including foldables and the S24 series, through various holiday season promotions. The goal is to achieve double-digit annual flagship sales growth. Additionally, MX Business will expand sales of tablets and wearables connected to year-end seasonality, particularly new premium products with significantly enhanced performance, to boost sales and profits.
In 2025, the macroeconomic environment is expected to stabilize somewhat due to interest rate cuts, resulting in slight growth in the smartphone market. The mass market segment, along with demand for ecosystem products, is projected to grow. The smartwatch and true wireless stereo (TWS) markets are also expected to expand with wider applications of AI capabilities.
MX Business will focus on driving sales growth and improving profitability by concentrating on flagship products, such as smartphones, foldables, tablets, and wearables, based on further advancements in Galaxy AI.
Samsung DC (Mobile eXperience) in Q3 2024
The semiconductor unit reported operating profit of 3.86 trillion won (USD 2.8 billion approx.), up 2.93% from the previous year, but down 40% from the previous quarter.
Demand for advanced nodes increased, driven by rising demand for AI, but mobile and PC demand underperformed. In the next quarter, with Mobile/PC market rebound delayed; weak demand will persist, but advanced demand to grow due to AI, said the company.
Samsung will continue to develop 2nm GAA technology and focus on process/infra development to secure mobile/HPC customers next quarter.