In the first quarter of 2025, Samsung achieved a record high in quarterly revenue, raking in 79.14 trillion KRW, roughly $57.36 billion. This marks a 1.2 percent increase in operating profit, reaching 6.7 trillion KRW, or $4.89 billion, compared to the same period last year. A significant boost came from increased smartphone sales, particularly from the Galaxy S25 series. However, sustaining this growth poses challenges, and several concerns loom on the horizon.
Remarkably, Samsung’s smartphone division brought in 4.3 trillion KRW, the highest in four years, marking a 23 percent increase. This surge is largely credited to the launch of the Galaxy S25 Edge and other flagship models. However, Samsung faces a tough road ahead in other areas, notably the semiconductor sector.
The company struggles with a 42 percent decline in semiconductor profit. Analysts attribute this to prior stockpiling of chips and smartphones ahead of trade tariffs, temporarily elevating earnings. The memory segment suffered due to decreasing average selling prices and a drop in high-bandwidth memory chip sales, losing ground to competitors like SK hynix. U.S. export controls have further compounded these challenges.
On the research and development front, spending increased by 16 percent to 9 trillion KRW, or $6.3 billion. Meanwhile, Samsung’s display division saw an operating profit of 1.1 trillion KRW, or $770.3 million. Despite struggles in its foundry arm, there are signs of potential recovery. Samsung reportedly achieved a 30 percent yield during the 2nm trial production of the Exynos 2600, with prospects for improvement by year-end.
Rumors suggest ongoing talks with Qualcomm about possibly manufacturing the Snapdragon 8 Elite Gen 2 using Samsung’s 2nm process, though no agreements have been made yet. Looking ahead to the latter half of 2025, Samsung plans to boost TV sales, integrate AI technologies, and establish strategic partnerships with distributors.
