Samsung Q1 Profit Rises on Galaxy S25 Demand, Chip Earnings Lag

Samsung Electronics (KS:005930) posted a modest rise in first-quarter operating profit, driven by strong demand for its flagship Galaxy smartphones and resilient performance in its Device Solutions unit. The South Korean tech giant reported an operating profit of 6.7 trillion won ($4.7 billion) for Q1 2025, slightly up from 6.6 trillion won ($4.6 billion) in the same period last year.

Revenue climbed 10% year-over-year to 79.1 trillion won, supported by solid sales in both the Mobile eXperience (MX) and Device Solutions (DS) divisions. The MX division, which oversees Samsung’s smartphone business, saw a 43% surge in quarterly revenue to 37 trillion won. This growth was primarily fueled by the successful launch of the AI-powered Galaxy S25 series, reflecting robust consumer interest in advanced mobile AI features.

However, the gains were partially offset by weaker results in Samsung’s memory chip and display businesses. Operating profit in the memory chip segment dropped to 1.1 trillion won from 1.9 trillion won a year ago, largely due to lower demand for high-bandwidth memory (HBM) and stricter export controls affecting AI chip-related shipments. Samsung Display Corp also posted lower profits, citing seasonal weakness in small and mid-sized panel sales.

Samsung’s Digital Appliances (DA) division highlighted plans to boost sales of AI-integrated, high-value appliances despite ongoing global uncertainties, including potential tariff impacts.

Samsung’s mixed Q1 performance highlights its growing reliance on mobile innovation and the challenges faced by its semiconductor and display segments amid evolving global trade dynamics and AI-related component restrictions. The company’s forward strategy includes leveraging AI across its product lines to maintain momentum in a highly competitive tech landscape.