- Samsung’s Q1 2025 revenue reaches an all-time high of 79.14 trillion won, with operating profit at 6.7 trillion won.
- The semiconductor division’s profit drops 42% year-on-year, impacted by reduced demand for high-bandwidth memory chips and export controls.
What happened: Record mobile sales offset chip division slump
Samsung Electronics reported its financial results for the first quarter of 2025, achieving a record-high consolidated revenue of 79.14 trillion won ($55.34 billion), a 10% increase from the previous year. Operating profit rose slightly to 6.7 trillion won ($4.7 billion), up from 6.61 trillion won in Q1 2024.
The strong performance was primarily driven by robust sales of the Galaxy S25 smartphone series, which contributed to a 43.41% quarter-on-quarter revenue increase in the Mobile eXperience (MX) division, totaling 37 trillion won. Operating profit for the MX division reached 4.3 trillion won, marking the highest in four years.
However, the semiconductor division faced significant challenges, with operating profit declining 42% year-on-year to 1.1 trillion won ($774 million). The downturn was attributed to decreased average selling prices and weakened demand for high-bandwidth memory (HBM) chips, as customers awaited the launch of next-generation memory products.
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Why it is important
Samsung’s Q1 2025 results highlight the company’s resilience in its consumer electronics segment, particularly smartphones, amid ongoing challenges in the semiconductor industry. The strong sales of the Galaxy S25 series underscore the importance of innovation and product appeal in driving revenue growth.
Conversely, the semiconductor division’s struggles reflect broader industry trends, including fluctuating demand for memory products and the impact of geopolitical factors such as U.S. export restrictions. These challenges emphasise the need for strategic adjustments and diversification to mitigate risks associated with global trade tensions.
Looking ahead, Samsung anticipates continued growth in its memory business by meeting evolving AI needs and expanding its high-value-added product offerings. The company plans to enhance its server-centric portfolio and ramp up production of advanced memory solutions to address anticipated demand in the second half of the year.
