Samsung Electronics forecast a turnaround in the global smartphone market in the second half of 2024, driven by stabilising consumer sentiment and growth in emerging markets, with a similar rebound expected in tablets and wearables.

Mobile eXperience (MX) VP Daniel Araujo noted in an earnings call the rebound in H2 will come after continued weakness in the current quarter. He added the MX division is aiming for annual growth in smartphone revenue “as we maintain sales momentum by applying Galaxy AI beyond the S24 to existing flagship products”.

MX and Networks revenue in Q1 increased 5 per cent year-on-year to KRW33.5 trillion ($24.3 billion), with operating profit falling 11 per cent to KRW3.5 trillion.

Shipments of smartphones and tablets were both flat at 60 million and 7 million, respectively, while smartphone ASP increased 3.4 per cent to $336.

Araujo stated that with escalating geopolitical instability and likely price hikes in key components, it aims to “secure solid profitability by continuing to streamline operations”.

On a group level, net profit jumped more than fourfold to KRW6.6 trillion, with sales growing 63.8 per cent to KRW71.9 trillion. The gains were aided by higher prices of memory chips, with the chip division’s revenue nearly doubling to KRW17.5 trillion and the unit returning to profit.

A weak Korean won added about KRW300 billion to its operating profit compared with the previous quarter.