MX and Network Business Division Expected to Report Operating Profit of 3.6 Trillion Won
Driving Samsung’s Overall Performance…Success of Galaxy S25
Samsung Electronics’ MX (Mobile Experience) and Network Business Division (hereafter referred to as the MX Division) is expected to achieve solid performance in the first quarter of this year, driven by the successful launch of the Galaxy S25. Despite slowdowns in semiconductors, display, and home appliances, it is maintaining an upward trajectory and is credited with boosting Samsung’s overall performance.
On April 8, Samsung Electronics announced its preliminary first-quarter earnings, reporting sales of 79 trillion won and an operating profit of 6.6 trillion won. This represents a 9.8% increase in sales from the same period last year, but a 0.2% decrease in operating profit. The figures significantly exceed analysts’ average estimates compiled by FN Guide, which predicted approximately 77 trillion won in sales and 4.9 trillion won in operating profit, marking an “earnings surprise.”
While the detailed performance for each business division was not disclosed due to the preliminary nature of the announcement, recent projections from major domestic securities firms suggest the MX Division recorded first-quarter sales of 34.9 trillion won and an operating profit of 3.6 trillion won. These figures represent increases of 4.1% and 2.6%, respectively, compared to the same period last year. The operating profit of the MX Division accounts for 73% of Samsung’s total. Given the semiconductor division’s operating profit of around 600 billion won, the MX Division’s results are remarkable.
The solid performance of the MX Division is attributed to the February release of the Galaxy S25 series, which has been a tremendous success. The Galaxy S25 achieved the highest pre-order sales for any S series to date, with 1.3 million units sold. The series also set a record for the shortest time to sell 1 million units in Korea, reaching this milestone in just 21 days, four days faster than the previous record held by the Galaxy Note 10.
Earlier, Tae-moon Roh, President of Samsung Electronics’ MX Division, expressed confidence at the Galaxy Unpacked event, stating that the Galaxy S25 is projected to surpass the sales of previous models, leading the mainstream adoption of AI phones with sales outperforming market growth.
Samsung’s focus on a premium strategy has led to an increase in average selling prices (ASP) due to higher sales of high-priced models, contributing to profit growth. However, the total smartphone sales volume is on a decreasing trend. Samsung’s total smartphone sales for the first quarter are estimated to be 66 million units, down 2 million units compared to 68 million in the same period last year.
Samsung aims to continue its positive performance trend in the second quarter with the release of a new “ultra-slim” smartphone, the Galaxy S25 Edge. Expected to be unveiled as early as mid-next month, this model is anticipated to be the slimmest design in the Galaxy series history, measuring 1.4mm thinner than the basic Galaxy S25 model (7.2mm) at 5.8mm.
Despite its slim and light design, it will feature specifications befitting the premium lineup, including a 4700-5000mAh battery, Qualcomm’s “Snapdragon 8 Elite” chipset, and a high-performance 200 million-pixel camera. The price is expected to fall between the Galaxy S25 Plus (1,353,000 won) and the Ultra (1,698,400 won).