Siemens Reports Growth in Revenue and Profits in Q1
In its first fiscal quarter of 2025, Siemens reported a revenue increase and a decline in orders.
Samsung's mobile division forecasts smartphone shipments to increase in the second half of 2024. The company's optimism is based on stable revenue growth in Q2, though profitability declined due to the rising price of components.
Mobile eXperience (MX) and Networks sales rose 7% to KRW27.4 trillion ($19.9 billion) while operating profit dropped 26.6% to KRW2.2 trillion. Shipments of smartphones increased by 18.9% to 54 million units and tablets by 16.7% to 7 million. Smartphone ASP improved 7.7% to $279.
On its earnings call, Samsung MX VP Daniel Araujo noted the mobile unit recorded double-digit profitability in the first six months of 2024. He emphasized the overall demand for smartphones in H2 is expected to increase year-on-year, with its premium segment being driven by growing demand for AI and the launch of new models.
“We aim to expand sales of foldables, where on top of their enhanced product competitiveness, we applied the Galaxy AI experience tailored to the form factor,” he stated. Araujo added the devices have significantly improved core performance including durability, battery life, and camera compared with early models.
However, he said the growth rate of the mass segment is expected to slow due to channel inventory build-up resulting from excessive selling during the first half by some vendors, as well as shrinking sales and marketing activities caused by rising material costs. Demand for ecosystem products including tablets, smartwatches, and smart rings is also forecast to increase.
On a group level, net profit jumped more than five-fold to KRW9.8 trillion, with revenue rising 23.5% to KRW74.1 trillion. The growth was led by its chip business, which increased 94% to KRW28.6 trillion. The company said rising AI investments by hyperscale customers drove robust demand for high-bandwidth memory, along with conventional DRAM and solid-state drive products. R&D expenses increased 10.9% to KRW8.1 trillion.