Samsung TV & Smartphone Sales Spike Amid AI Innovations Ahead of CES 2025

Samsung has reported an increase in mobile sales, driving the company to achieve record-high revenue during the third quarter of 2024. Despite facing challenges in their semiconductor business, which saw a 40% drop in sales as competition in the AI processor market intensifies, Samsung's overall performance remains strong.

The semiconductor division recorded an operating profit of approximately US$2.8 billion, marking a significant decrease of 40% compared to the previous quarter.

Meanwhile, the Device eXperience (DX) division, which manages the Galaxy line of smartphones and tablets, reported global revenues totaling A$49.713 billion. This represents a 2% increase year-over-year, although the operating profit fell by 9.7%, largely due to aggressive retail discounts.

The growth in revenue can be attributed to robust sales of new smartphones, tablets, and wearables. Additionally, sales of TVs and visual displays increased, particularly due to the popularity of Neo QLED and OLED large TVs, along with a rise in service revenue from the sale of data gathered from their consumer PCs.

The Digital Appliances division also showed progress, primarily thanks to higher sales of their “Bespoke AI” products.

Harman, another segment of Samsung, achieved revenues of A$3.9 billion and an operating profit of A$397 million in Q3, aided by strong consumer audio sales and improved cost management. Samsung Display also showed positive results; profitability improved as sales of small and medium-sized panels gained traction due to new smartphone releases from major clients like Apple. Furthermore, large panel sales increased due to the rising demand for TVs and monitors.

In total, Samsung Electronics generated US$57.35 billion in revenues, with an operating profit of US$6.67 billion in the last quarter. This performance surpassed the previous record of US$55.6 billion set in Q1 2022, achieving year-over-year growth of 17.4% in revenue and an impressive 222.7% increase in operating profit, bolstered by a recovering semiconductor market and strong performances in their smartphone and TV sectors.

Exchange rates played a crucial role in the third-quarter results, with a stronger South Korean won negatively affecting the overall operating profit by around 500 billion won.

Looking ahead, Samsung Electronics anticipates growth in the semiconductor sector for Q4, but overall growth may remain limited due to weaker performances in the finished product categories. The DS division is planning to enhance its portfolio with high-value memory products and advanced technologies. Conversely, the DX division aims to improve profitability by focusing on premium product offerings and strengthening its AI strategy.

As the company navigates through a management restructuring, it is expected to unveil a wide array of new products at CES 2025, scheduled to take place in Las Vegas.

Samsung, sales, AI