Thanks to AI, Galaxy S24 shipments blew away those of the Galaxy S23 during Q2

Maybe there is something to all of this artificial intelligence hoopla that resonates with the public after all. Samsung said today, when releasing its second quarter financial report, that during the second-quarter and the first half of this year shipments of the flagship Galaxy S24 series grew at a double-digit pace compared to deliveries of the Galaxy S23 line during the same time period last year. In addition, revenue generated by the new phones also grew at a double-digit pace compared to last year's flagship models on a year-over-year basis during Q2 and the first six months of this year.

Earlier in the year Samsung reported strong Q1 results for the 2024 flagship line, which includes the Galaxy S24, Galaxy S24+, and Galaxy S24 Ultra. At the time, the company cited the new GalaxyAI features as being a catalyst for improved shipments. One such feature, called Live Translate, allows a user to engage in a phone conversation with someone speaking a foreign language by translating the conversation in real-time on both sides of the call.

Smartphone demand declined sequentially during the second quarter, especially in the premium end of the business. Despite this weakness, the Galaxy S24 line performed strongly. For the second half of the year, Samsung expects smartphone demand to rise on an annual basis with growing demand for AI and the release of new models with innovative features producing increased demand for premium handsets. Smartphone shipments are forecast to rise year-over-year during the third quarter which runs from July through September.

The company also sees demand rising for what it calls ecosystem products like smartwatches, smart rings, and tablets. Samsung will also look to hike revenue in this business segment by expanding sales of flagship smartphones and ecosystem products. The unit also plans to increase profitability "by optimizing product specifications, including component standardization and pursuing operational efficiencies."

Sammy's MX (Mobile Experience) and Networks unit posted revenue of 27.38 trillion Korean won ($19.97 billion USD) and 2.23 trillion Korean won in operating profits ($1.63 billion USD).

The strong demand for the Galaxy S24 line also helped Samsung Display Corporation (SDC). During the second half of the year, the company said demand for smartphone upgrades coming from the public, with many consumers looking to own a new phone with AI features, should help generate an increase in mobile display sales. SDC is supplying some of the OLED panels for the upcoming iPhone 16 series and says that the business unit will be "supporting new smartphone launches from key customers" in the second half of the year. Read as "Apple."

Samsung Display had quarterly revenue of $7.65 trillion Korean Won ($5.58 USD) and operating profits of 1.01 trillion Korean won ($736 million USD). The business unit is working to improve the power consumption, brightness, and the durability of its panels all while attempting to make these displays thinner.

Overall, Samsung reported Q2 2024 revenue of 74.07 trillion Korean won ($54 billion USD) with an operating profit of 10.44 trillion Korean won ($7.61 billion USD). Korean investors loved the report sending the stock up 2,900 Korean won  ($2.11) or 3.58% to 83,900 Korean won per share ($61.15 USD).