Samsung Electronics reported an operating profit of KRW 79.14 trillion ($56 billion) for the first quarter of 2025, from KRW 71.92 trillion ($52 billion) in the same period last year.
This growth was driven by strong sales of its flagship Galaxy S25 smartphones and high-value-added products, despite challenges in the semiconductor sector.
Samsung noted that it has committed its largest-ever annual budget to research and development (R&D) for 2024, with Q1 R&D spending up by 16% year-on-year to KRW 9 trillion.
“Despite growing macroeconomic uncertainties from global trade tensions and a slowing global economy, the company is committed to securing long-term growth, especially through investments in AI and next-gen chip technologies,” it said in a statement.
The Device Solutions (DS) Division brought in KRW 25.1 trillion in revenue and KRW 1.1 trillion in operating profit.
While memory chip earnings were affected by falling average selling prices and softer HBM demand, Samsung expects a recovery beginning in Q2 with the rollout of enhanced HBM3E 12H chips and transition to 8th-gen V-NAND.
Demand for AI servers and next-generation GPUs is projected to drive growth in the second half of 2025, along with the expansion of high-capacity DDR5 modules and fast LPDDR5x memory for mobile devices.
Samsung’s Mobile eXperience (MX) and Networks businesses led performance this quarter with KRW 37 trillion in revenue and KRW 4.3 trillion in operating profit.
The company is planning to launch the Galaxy S25 Edge in Q2 and expand its AI smartphone offerings through the Galaxy A series.
In the second half, Samsung will boost its foldable device lineup and introduce new ecosystem products, including wearables and extended reality (XR) devices.
Samsung Display Corporation (SDC) posted KRW 5.9 trillion in revenue and KRW 0.5 trillion in profit. While mobile display sales dipped due to seasonality, demand for QD-OLED gaming monitors helped offset the decline.
Meanwhile, the Visual Display and Digital Appliances segments recorded KRW 14.5 trillion in revenue, supported by sales of premium TVs like Neo QLEDs and OLEDs. Samsung plans to further grow this segment with its 2025 AI TV lineup.
Shahriena Shukri is a journalist covering business and economic news in Malaysia, providing insights on market trends, corporate developments, and financial policies. More about Shahriena Shukri.
