NEWS

Samsung returns to record profits thanks to AI boom



As major tech companies race to develop their own advanced AI models, semiconductor prices continue to climb. Which has been good news for Samsung Electronics, the world’s leading semiconductor maker, since the beginning of the year.

After a profit of $4.9 billion (€4.5 billion) in the first quarter of 2024, an amount ten times higher than that of the first quarter of the previous year, the results of the second quarter promise to be much better than expected, with $7.5 billion (€6.9 billion) in profits and sales up 23% compared to 2023.

Strong profits in the chip sector are offsetting the group’s deteriorating margins in the smartphone sector, analysts say. “Samsung’s flagship Galaxy S24 models are selling well, but rising material and marketing costs are eating into the division’s profits,” note it Financial Times.

The South Korean giant plans to launch its latest foldable phone models high-end models with artificial intelligence functions on July 10 in Paris in an attempt to face increasingly threatening competition from its Chinese rivals, Xiaomi and Huawei, in this high-margin segment.

Moreover, these good figures are being released at a time when the unions representing Samsung’s 28,000 employees are threatening to launch a new three-day strike on Monday, July 8. after that of June 7ththere “the very first strike in the tech giant’s fifty-year history.” They continue to demand both wage increases and more vacation days.

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