We already knew that AI chip demand was driving crazy profits for Samsung. That’s good, because its earnings report shows that smartphone revenue and profitability both declined since last quarter, even as new AI features — it claims — helped buoy demand for its latest flagship devices:

The Galaxy S24 series achieved double-digit year-on-year growth in both shipments and revenue over its predecessor for both the second quarter and the first half of the year.

In the second half of 2024, Samsung says overall demand for its smartphones is expected to increase year-on-year, alongside “ecosystem products such as tablets, smartwatches, and smart rings.”