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Samsung turns it around, forecasts massive jump in profit for Q1 2024
- Samsung estimates it experienced a profit of $4.9 billion between January and March 2024.
- This comes after the company reported declining profits for four straight quarters.
- Sales have reportedly risen by more than 71%.
Last year wasn’t exactly the strongest year for Samsung and its various products. In fact, around this time last year, the company saw about a 95% decline in year-over-year earnings. But it looks like the Android phone maker may have turned things around, according to profit estimates.
CNN reports that Samsung expects to see a big increase in its profits this quarter. The Korean firm reportedly estimates that its operating profit has increased to 6.6 trillion Korean won ($4.9 billion). For comparison, the phone maker reported a profit of 640 billion Korean won ($478.55 million) in Q1 2023.
In addition to the positive forecast, the company says it expects that sales have risen by over 11%. Samsung is expected to release its earnings report later this month.
Although Samsung is best known for its phones, its decline in profits last year was not due to its phones. Revenue from its mobile division reportedly grew by 22% and operating profit went up by 3% year-over-year.
The real problem turned out to be the company’s chip department, which experienced a loss of 4.58 trillion Korean won ($3.4 billion). This was a lingering effect of the pandemic which forced the company to stockpile chips during increased demand and left it with a surplus of inventory after.