Samsung Electronics experienced a significant increase in turnover, reaching 14.6 billion euros from the Memory branch in the last quarter, which is 142 percent higher compared to the previous year. This growth in revenue was primarily driven by the Memory branch, leading to an operating profit of 7 billion euros, a substantial increase of 6.6 billion euros from the previous year.
The rise in demand for HBM-DRAM and SSD chips, especially from large hyperscaler cloud companies investing in AI, has contributed to the success of Samsung Electronics. According to Samsung , 'price improvements' have also played a crucial role in boosting turnover and operating profit. The company anticipates continued strong performance from the Memory branch throughout the year, driven by the high demand for chips.
A year ago, the Device Solution branch, which includes Memory, reported a loss of 3.1 billion euros due to economic uncertainty among consumers. In the last quarter, the operating profit of the DS branch reached 4.34 billion euros, accounting for more than half of Samsung Electronics' overall operating profit.
The smartphone branch saw a slight increase in turnover, reaching 17.9 billion euros, an 8 percent growth. Despite lower overall demand for Samsung smartphones, the S24 series managed to outsell its predecessor, contributing to the uptick in revenue. However, increased component costs led to a slight decrease in profitability for the smartphone branch. Last quarter, Samsung's smartphone and network branch reported an operating profit of 1.5 billion euros, a decline of more than half a billion euros from the previous year.
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