Samsung – AI Memory Demand Drives Record Quarterly Profit Growth
Samsung – Samsung Electronics has reported preliminary quarterly results showing a sharp rise in profit, supported by growing global demand for artificial intelligence memory chips. The South Korean technology company said its operating profit reached 89.4 trillion won, or about USD 61 billion, according to figures cited by The Korea Herald.
Revenue and operating profit exceed expectations
The company’s preliminary filing indicated that operating profit climbed 1,810.3 per cent from a year earlier. Revenue rose 129.3 per cent year on year to 171 trillion won, equivalent to roughly USD 112.9 billion.
Samsung’s operating profit was also higher than market projections. The result exceeded the 84.16 trillion won consensus estimate compiled by Yonhap Infomax by 6.2 per cent, highlighting the strength of its semiconductor business during the latest reporting period.
AI boom boosts memory chip business
The results represent another record quarter for Samsung, the world’s largest memory chip manufacturer. Demand for high-bandwidth memory, or HBM, and other advanced memory products has increased as technology companies expand their investments in artificial intelligence infrastructure.
AI servers and data centres require large volumes of high-performance memory chips, which has pushed up demand and improved pricing across the semiconductor market. Samsung has benefited from this trend as customers seek components capable of handling increasingly complex AI workloads.
The company is expected to release its detailed earnings report later in July. That update is likely to provide a clearer picture of performance across its chip, mobile, display and consumer electronics divisions.
Memory shortages affect foldable phone prices
The surge in demand for AI memory is also influencing Samsung’s smartphone business. The company is reportedly preparing to raise prices for its next foldable phone range as higher component costs affect production expenses.
According to pricing information reportedly obtained from South Korean telecom distribution channels, the entry-level Galaxy Z Flip8 may cost about 13 per cent more than the Galaxy Z Flip7. The expected increase would mark a change from Samsung’s previous approach, which has generally kept foldable phone pricing relatively stable between annual upgrades.
Galaxy Z Flip8 may see higher domestic price
The Galaxy Z Flip8 offers the most direct comparison because it will replace the existing Flip7 model. Citing local outlet Bloter, The Korea Herald reported that the 256GB version of the Flip8 could be priced at around 1.68 million won in South Korea, or approximately USD 1,100.
That would be about 198,000 won higher than the price of the comparable Galaxy Z Flip7 model. Samsung has not yet formally confirmed the pricing of its upcoming foldable devices.
The expected increase reflects wider pressure across the electronics industry, where memory shortages and stronger demand for AI-related components are affecting supply chains. Manufacturers are facing higher costs for advanced chips, and some of those expenses may be passed on to consumers.
Samsung’s latest financial performance underlines the expanding role of AI in the global technology market. While the company’s semiconductor division has gained from the increase in memory demand, the same market conditions may make premium consumer devices more expensive in the months ahead.