Samsung is expecting to sell more smartphones this year than last year. The South Korean firm has reportedly ordered more smartphones and tablets to be manufactured in the second quarter of this year.
Production of Galaxy phones and tablets raised by 13% for the first half of 2024
According to a new report from TheElec, the production volume for Galaxy smartphones and tablets has increased by 3% for the second quarter of 2024. Combined with the 22% higher production in the first quarter, the production volume for Galaxy phones and tablets will be 13% higher than last year, thanks to better-than-expected sales of the Galaxy S24 series.
On the whole, Samsung has plans to manufacture 49.9 million Galaxy phones and tablets in Q2 2024, which is 3% higher than Q2 2023. For the first half of 2024, the total production volume is said to be 114.4 million. This quantity doesn't include the production of devices made by ODMs like China's Wingtech.
However, the report also says that Samsung could reduce the production of phones in the second half of this year to maintain profitability. The company doesn't want to produce too many Galaxy A and Galaxy Z series phones. Depending on the sales of the upcoming foldable phones, the Galaxy Z Flip 6 and the Galaxy Z Fold 6, Samsung could adjust the production volume.
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Samsung's smartphone shipments in the first quarter of this year were 59.5 million units, but shipments could fall below the 55 million mark in the second quarter. This is due to weak consumer sentiment looking at rising inflation and geopolitical instability.
The South Korean firm's revenue in Q1 2024 was KRW 33.53 trillion ($24 billion) from its smartphone division, while the operating profit was KRW 3.51 trillion ($2.52 billion). This means that the company's profit margin was 10.5% in the first quarter of 2024.
In the second quarter, the revenue is expected to reach KRW 29 trillion ($20.87 billion), while its profit is said to be KRW 2.8 trillion ($2.01 billion)
