Written by 2:57 PM Tech

What would have happened without the Galaxy S25?… Despite Samsung Electronics’ MX division holding up well, the performance is disappointing.

Sales increased by 0.67% compared to the same period last year… Operating profit plummeted by 55.23%

 [Photo Source=Yonhap News]

[Photo Source=Yonhap News]

MX Division Shows Growth, Making Presence Felt Despite Poor Performance

‘The Mobile eXperience (MX) division, responsible for smartphones, has once again played the role of a savior for Samsung Electronics’ second-quarter performance this year.’


‘According to the Financial Supervisory Service’s electronic disclosure system on the 31st, Samsung Electronics recorded a consolidated sales of KRW 74.5663 trillion and an operating profit of KRW 4.6761 trillion in the second quarter of this year. While sales saw a minor increase of 0.67% compared to the same period last year, operating profit plummeted by 55.23%. Amid the continuous losses in the foundry business and the overall slowdown in the DX (Device Experience) division, only the MX division, responsible for smartphones, demonstrated steady growth, making its presence known.’

‘The DS (Device Solutions) division, which handles the semiconductor business, recorded sales of KRW 27.9 trillion and an operating profit of KRW 400 billion. This is the lowest level since the fourth quarter of 2023.’

‘Thanks to strong sales of high-value memory products for servers and main transactions in the foundry, sales increased by 11% compared to the previous quarter. However, profit was significantly affected by costs related to inventory valuation provisions in the memory business and provisions arising from U.S. sanctions on China. The System LSI struggled with profitability recovery due to increased costs in developing advanced products, and the foundry failed to escape a deficit structure due to the impact of sanctions and decreased utilization rates in mature process lines.’

 [Photo Source=Yonhap News]

[Photo Source=Yonhap News]

Defending Performance with Galaxy S25 Flagship

‘In contrast, both sales and operating profit in the MX division grew compared to the same period last year, playing a central role in defending Samsung Electronics’ performance. This was thanks to stable sales of existing flagship smartphones, including the Galaxy S25 series launched in the first quarter.’

‘The MX division recorded smartphone shipments of 58 million units and tablet shipments of 7 million units in the second quarter. Although sales decreased compared to the previous quarter due to off-season effects, the division maintained a healthy profitability with an ASP (Average Selling Price) of $270.’

‘In a performance announcement conference call on the morning of the 31st, Daniel Araujo, Senior VP of Samsung Electronics MX Division, stated, “The smartphone market saw a decline in shipments as the off-season continued in the second quarter, but flagship models centered around the S25 series and the A series tablets showed strong sales, leading to growth in both sales and operating profit compared to last year.” He added, “With raw material costs and certain component prices slightly declining compared to last year, and continued efforts for resource efficiency, we maintained double-digit profitability.”‘

 [Photo = Yonhap News]

[Photo = Yonhap News]

Smartphone Market Forecast for the Second Half?

‘In the second half, the global smartphone market is expected to show slight negative growth compared to last year, due to concerns over economic slowdown and rising tariffs in developed countries.’

‘However, overall smartphone sales are expected to see slight growth due to premium products and the upgrading of consumer patterns driven by economic growth in emerging markets. The tablet and smartwatch markets may experience negative growth due to macroeconomic uncertainties, but wireless earphones (TWS) are expected to continue their growth trajectory, bolstered by expansion in emerging markets.’

‘Araujo stated, “It is anticipated that smartphone shipments will gradually recover in the third quarter and that ASP will rise.” He also highlighted, “The newest 7th generation foldable devices, Galaxy Z Fold7 and Z Flip7, have become thinner and lighter, with innovative camera capabilities and a wider cover screen, as well as One UI optimization for foldables, receiving very positive customer feedback.”‘

‘These foldable products are considered to be key products driving the creation of new demand and expansion of the customer base.’

‘The Galaxy S25 series is expected to continue its flagship-focused sales, aided by seasonal promotions and the early release of the 25FE, while the A series will also strengthen its presence in growth markets through new model releases, AI features, and OS upgrades. The MX division plans to strengthen the Galaxy ecosystem’s competitiveness by expanding the product lineup beyond smartphones to tablets and watches.’

‘Araujo emphasized, “Despite macroeconomic uncertainties and pressure from rising raw material costs, we aim to continue maintaining solid profitability through the expansion of flagship products, the premium eco-business proportion, and company-wide process optimization.”‘

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