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Key Points

Samsung Electronics has reported a slight 0.15% decrease in Q1 operating profit, but the results exceeded market expectations. The company's performance was bolstered by strong sales of its new Galaxy S25 smartphones and a potential recovery in the semiconductor market. Analysts remain cautiously optimistic about the second quarter, anticipating increased memory chip demand and pricing. Despite challenges in the high bandwidth memory (HBM) sector, Samsung remains a significant player in the global tech industry.

Key Points: Samsung Q1 Profit Dips 0.15pc Despite Strong Galaxy S25 Sales

  • Samsung reports 6.6 trillion won Q1 operating profit
  • Galaxy S25 smartphones boost performance
  • Semiconductor business shows resilience
  • Potential memory chip demand recovery expected
2 min read

Samsung reports 0.15 pc decrease in Q1 operating profit, logs strong phone sales

Samsung Electronics reports modest Q1 earnings with 9.8% sales growth, driven by new smartphone launches and potential chip market recovery

"Shipments of memory chips will rebound - Han Dong-hee, SK Securities Analyst"

Seoul, April 8

Samsung Electronics on Tuesday estimated its first-quarter operating profit edged down 0.15 percent from a year earlier but exceeded market expectations on strong sales of its new flagship smartphones.

The world's biggest maker of memory chips expected an operating profit of 6.6 trillion won (US$4.5 billion) for the quarter ending in March.

The operating profit was 33.5 percent higher than the average estimate of 4.9 trillion won, according to a survey by Yonhap Infomax, the financial data firm of Yonhap News Agency.

Sales increased 9.8 percent to 79 trillion won. The data for net income was not available.

Experts noted the better-than-expected performance may be attributable to the popularity of the new Galaxy S25 smartphones, which went on sale in February.

Samsung Electronics did not release a detailed earnings report of its business divisions, but the market forecast that the company's semiconductor business earned around 1 trillion won in operating profit for the first quarter.

The company will release its final earnings report later in the month.

Some analysts forecast that Samsung Electronics' earnings will rebound in the second quarter, driven by recovering demand for memory chips from China and rising prices of dynamic random access memory (DRAM) products.

"Shipments of memory chips will rebound, and prices of memory products like DDR5 and NAND flash are also expected to increase in the second quarter," said Han Dong-hee, an analyst at SK Securities Co.

Others remained cautious, pointing to growing uncertainty stemming from U.S. President Donald Trump's tariff policies and Samsung Electronics' sluggish performance in the high-margin high bandwidth memory (HBM) sector.

Samsung Electronics' HBM chips have reportedly struggled to pass Nvidia Corp.'s quality tests, preventing the company from joining the global HBM supply chain, which is currently dominated by Nvidia, SK hynix Inc. and TSMC.

"Even if Samsung's HBM products gain approval, it will be difficult for the company to see a significant boost in profits, as its competitors have already secured Nvidia's orders," said Noh Geun-chang, an analyst at Hyundai Motor Securities Co. "A rebound in memory demand and prices is expected, but it may not be strong or sustained."

- IANS

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Reader Comments

J
James L.
The Galaxy S25 is seriously impressive! Upgraded from my S22 and the camera improvements alone are worth it. No wonder their phone sales are strong. Samsung keeps delivering 🔥
S
Sarah K.
Interesting that they beat expectations but still showing a slight profit decrease. The semiconductor business seems to be their weak spot right now - hope they can turn that around in Q2.
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Miguel R.
That HBM situation with Nvidia is concerning. Samsung needs to step up their game in AI hardware if they want to stay competitive. The mobile division can't carry them forever.
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Aisha T.
I work in tech and we've been waiting for Samsung's DDR5 prices to stabilize. Good to hear analysts predicting an increase - means the market might finally be recovering!
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Tommy G.
Respectfully, I think Samsung needs to focus less on gimmicky phone features and more on their chip business. That's where the real money is long-term. The HBM struggles show they're falling behind.
L
Lisa W.
Just got my S25 last week and I'm obsessed! The battery life is insane compared to my old iPhone. Samsung's killing it with hardware this year 👏

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