Samsung Electronics announced its preliminary results for the first quarter of this year.
The consolidated sales for the first quarter were disclosed at 79 trillion won, with an operating profit of 6.6 trillion won.
Compared to the same period last year, sales increased by 9.84%, marking the highest ever for the first quarter.
Although the operating profit decreased by 0.15% from the same period last year, it greatly exceeded market expectations, which had anticipated figures below 5 trillion won, resulting in what is known as an “earnings surprise.”
After recording an operating profit of 10.4 trillion won in the second quarter of last year and experiencing two consecutive quarters of negative growth, the company managed a slight rebound in the third quarter.
Samsung Electronics did not disclose detailed performance by business division, but analyses suggest that the MX division, responsible for smartphones, contributed approximately 4 trillion won in operating profit, driving the first quarter results.
Samsung’s flagship smartphone, the Galaxy S25 series, which was launched in February, achieved a milestone of 1 million units sold in South Korea within 21 days, enjoying smooth sales.
On the other hand, the semiconductor business segment, the DS division, is analyzed to have achieved operating profits of around 1 trillion won.
It is estimated that the System LSI and foundry businesses continued to run a deficit of around 2 trillion won in the first quarter, but the memory semiconductor sector, including DRAM, is believed to have achieved an operating profit of around 3 trillion won.
China’s policy of providing subsidies, known as “Igu Hwan Shin,” to promote domestic demand by replacing old electronics, has expanded to include IT devices such as smartphones this year, significantly increasing DRAM demand and prices in China.
Moreover, ahead of the tariff war initiated by the Trump administration, there has been a global tendency to accelerate semiconductor orders, including DRAM, contributing to the “earnings surprise.”
However, Samsung warned that “the situation for the second quarter is very uncertain,” urging caution regarding rising internal and external expectations.
The impact of the new Galaxy S25 release could diminish from the second quarter, and there are concerns about demand contraction due to tariff shocks initiated by Trump.
This is because President Trump has repeatedly announced plans to impose item tariffs on semiconductors, coupled with growing fears of a global economic recession, including in the United States.
In the competition for market share for so-called “AI memory semiconductors,” where global demand is expected to increase continuously, Samsung Electronics is struggling to surpass key companies like Nvidia, adding to its concerns.