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Samsung’s Q1: Smartphones Shine, Profits Climb, and Records Fall


Updated: April 30, 2025 09:07

Image Source: Business Today
Samsung Electronics has reported a blockbuster first quarter for 2025 with a 21.7% rise in net profit to 8.22 trillion won ($5.74 billion), beating analyst expectations and its best performance in years. The technology giant also recorded a new all-time high for quarterly revenue of 79.14 trillion won ($55.3 billion), up 10% from the same period last year, led by the runaway success of its new Galaxy S25 smartphones and strong consumer demand.
 
Key Points:
  • All-Time High Revenue and Profit: Q1 net profit jumped 21.7% to 8.22 trillion won, with revenue 10% higher at an all-time high 79.14 trillion won. Both were higher than market estimates, with the net profit also surpassing consensus by more than 2 trillion won.
  • Smartphone Segment Star: The cell phone business stole the show with 37 trillion won in revenues and 4.3 trillion won in operating income, powered by strong shipment of AI-drive Galaxy S25 series.
  • Chip Headwinds: Even in the overall beat, Samsung's chip business faced revenue declining by 17% to 25.1 trillion won, while high-bandwidth memory (HBM) sale trailed due to export curbs and postponed sales of new AI chips.
  • R&D Spending at All-Time High: Samsung spent 9 trillion won on research and development in Q1, up 16% year-on-year, reflecting its focus on innovation during international competition in the tech space.
  • Upbeat Expectations: Samsung is expecting better second-half performance in 2025, particularly if international trade tensions calm down and demand for AI and next-generation devices gathers pace.
  • Bottom Line: Samsung's Q1 results show its grit and ability to adapt, with smartphone innovation compensating for chip sector challenges. Everyone is now waiting for its next-generation AI and foldable devices to maintain this momentum.
Sources: Yonhap News, Korea JoongAng Daily, Morningstar

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