Samsung credits the Galaxy S24 and AI in Q2 for positive surge as revenue rises

What you need to know

• Samsung's Q2 2024 report is here and the company is crediting a "strong" demand in AI and its Galaxy S24 series for a positive revenue shift.
• The company states that its memory business has continued to heal as the industry seeks Samsung for HBM, DRAM, and SSDs.
• The report also confirmed the Exynos 2500 is on the way with preparations in place for a "stable supply."
• Samsung is looking ahead to Q3 due to the Flip 6, Fold 6, and wearables following Q2's smartphone interest decline.

We've crossed into financial earnings territory, and Samsung's latest report seems positive, thanks to the Galaxy S24 and AI.

Samsung's Q2 2024 earnings report is shattering expert expectations as the brand puts up 74.07 KRW in consolidated revenue. Additionally, it posted 10.44 trillion KRW in operating profits. CNBC states Samsung's Q2 rose by 23% compared to the same time last year. What's more, statistics show that the company's operating profits rose by 1,458%.

Another highlight was the company's MX (mobile) and Network businesses, which posted 27.38 trillion KRW in consolidated revenue and 2.23 trillion KRW in operating profits. During the earnings call, Samsung said, "smartphone demand decreased sequentially in the seasonally weak quarter, particularly in the premium segment."

Despite a "sequential decline," the company reported that the Galaxy S24 series achieved a "double-digit" growth in shipments and revenue compared to the S23.

AI is another aspect of Samsung's revenue that it expects to continue to carry into the second half of 2024. The company also expects new products and "innovative" features to help its revenue bounce back. Such new devices are the Galaxy Z Flip 6 , Fold 6 , Galaxy Watch 7 , and the Galaxy Ring , as Samsung states demands in those areas should rise going into Q3.

For memory, Samsung states its DS Division continued to improve, posting 28.56 trillion KRW in consolidated revenue and 6.45 trillion KRW in operating profits. The report cites a "strong demand" for HBM, DRAM, and SSDs. More importantly, Samsung confirmed the existence of the Exynos 2500, saying it will ensure a "stable supply" for upcoming flagship models.

This is the second time Samsung has reported a positive quarter as Q1 saw a (sigh of relief) shift as its memory business returned to form . The launch of the Galaxy S24 series in January also contributed to the company's positive Q1 alongside its suite of Galaxy AI features.

Samsung's Head of Mobile, TM Roh, discussed the company's newfound focus on AI , stating that its R&D will be the main one in charge. Moreover, consumers could be on the cusp of new hardware changes for Samsung as it looks to accommodate on-device AI features.

Moving into Q3, Samsung's positive outlook is likely attributed to its July 10 launch of the latest foldable phones and wearables. It remains to be seen how well these devices perform, considering the Flip 6 and Fold 6 haven't received the same warm early reception as last year's. In South Korea, Samsung reportedly achieved 910,000 pre-order units for its foldable devices, a bit short of its record-shattering number in 2023.

Though the number dropped, the Flip 6 was said to make up 60% of those pre-orders.