Galaxy AI Phone Sales Up 13% QoQ... Ranked No.1 Globally

Q3 Earnings Announcement... MX Division Sales Reach 30 Trillion Won
AI-Equipped Smartphones Popular... 57.8 Million Units Shipped

Samsung Electronics has led the popularization of AI by applying artificial intelligence (AI) features to Galaxy smartphones, recording approximately KRW 30 trillion in sales in the Mobile Experience (MX) division in the third quarter of this year. This represents a 13% increase compared to the previous quarter and is attributed to the effect of the foldable phones Galaxy Z Flip6 and Fold6, which were released three months ago.

No Tae-moon, Head of MX Division (President), is introducing the Galaxy Z Flip6 and Fold6 at the 'Galaxy Unpacked' event held in Paris, France, on July 10.

Combining the sales of the MX and Network divisions, the total sales for the third quarter reached KRW 30.52 trillion, with an operating profit of KRW 2.82 trillion. The response to the newly introduced Galaxy Ring in the third quarter was also evaluated as positive.

On the 31st, Samsung Electronics stated, "Sales and operating profit increased compared to the previous quarter due to the launch of new smartphones, tablets, and wearables," adding, "Although material costs increased due to improved specifications to enhance product competitiveness, we maintained a near double-digit profit margin through sales focused on flagship products."

According to global market research firm IDC, smartphone shipments in the third quarter of this year totaled 316.1 million units, a 4% increase compared to the same period last year. Samsung Electronics shipped 57.8 million units, capturing an 18.3% market share and securing first place. The Galaxy Z Fold6 and Flip6 models equipped with AI features appear to have performed well in the premium segment.

Female shooting medalists are taking selfies with the specially designed 'Galaxy Z Flip6 Olympic Edition' for the Paris Olympic and Paralympic Games delegation.

The pre-order sales volume of the Z Fold6 and Flip6, released domestically in July, was 910,000 units, a decrease of 100,000 units compared to the previous Galaxy Z Fold5 and Flip5 (1.02 million units). However, according to FnGuide, securities firms predict that despite sluggish foldable phone sales, overall sales in the third quarter will increase compared to the previous quarter.

The Galaxy S24 series, the industry's first to feature on-device AI, has also been consistently well-received. In particular, in the October smartphone rankings released by the U.S. consumer magazine Consumer Reports, the Galaxy S24 Ultra maintained its number one position even after the release of the iPhone 16 Pro Max, tying with the iPhone 15 Pro Max with a total score of 87 points. The iPhone 16 Pro Max ranked third with 86 points.

Consumer Reports highly praised the Galaxy S24 Ultra for its bright display, advanced processor and camera performance, and improved battery life, stating that "Galaxy AI is practical and impressive." Additionally, the Galaxy S24 Plus scored 85 points, tying for fourth place with the iPhone 14 Pro Max and iPhone 15 Pro.

Samsung plans to connect the Galaxy Ring with upcoming XR (Extended Reality) device products.
[Image source=Yonhap News]

In the third quarter, AI wearable products equipped with health management features such as the Galaxy Ring, Galaxy Watch7, and Watch Ultra were launched, generating positive responses. Samsung Electronics said, "During the year-end peak season, we aim to achieve double-digit flagship sales growth by steadily continuing sales of AI smartphones such as the Z Fold6, Flip6, and S24 series," adding, "We also plan to expand sales of premium tablets and wearables."

Samsung Electronics plans to enhance the completeness of the Galaxy AI experience with the Galaxy S25 series, scheduled for release in the first half of next year, and strengthen customer engagement through various marketing and experiential events. In addition, they intend to further enhance the connected experience among next-generation products such as the Galaxy Ring and XR (Extended Reality) devices.