Samsung posts operating profit of 6.6 trillion won in Q1 exceeding market expectations

Samsung Posts Operating Profit Of 6.6 Trillion Won News

Samsung posts operating profit of 6.6 trillion won in Q1 exceeding market expectations
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Samsung Electronics posted an operating profit of 6 trillion won in the first quarter of this year, exceeding market expectations. However, it is h...

Samsung Electronics posted an operating profit of 6 trillion won in the first quarter of this year, exceeding market expectations. However, it is hard to be optimistic about the second quarter's performance as there are many variables, including the imposition of U.

S. tariffs. Samsung Electronics said on April 8 that its consolidated operating profit for the first quarter was estimated at 6.6 trillion won. It is down 0.15 percent from 6.61 trillion won in the same period last year. Sales reached 79 trillion won, a 9.84 percent increase compared to the same period last year . This figure exceeded market expectations, which had projected sales around 77 trillion won and operating profit around 5 trillion won. Detailed results by the business division were not disclosed. Industry analysts suggest that strong sales of the new AI-powered Galaxy S25 smartphone series played a key role in driving the overall performance. Securities firms expect the Mobile Experience division, which oversees smartphones, posted an operating profit of around 4 trillion won. The operating profit from the TV and home appliances division is estimated to be between 300 billion and 500 billion won. The Device Solutions division, which is responsible for semiconductors, is expected to have an operating profit of around 1 trillion won. While the memory business is estimated to have earned over 3 trillion won in operating profit, the non-memory segment, including foundry and system LSI, is believed to have posted operating losses of some 2 trillion won. Demand for memory D-RAM, Samsung’s main product, was stronger than expected. Analysts attribute this to China’s stimulus policy, known as “old-for-new replacement,” which provides subsidies to encourage consumers to upgrade old devices, boosting demand for smartphones and PCs and, in turn, semiconductor demand. The move to pre-emptively secure supplies ahead of the imposition of U.S. tariffs also seems to have had an impact. Recently, memory prices have been showing signs of improvement, raising expectations of a recovery in the industry. However, uncertainties loom large for the second quarter. The impact of the new smartphone release will likely diminish. Samsung is focusing on expanding sales of its fifth-generation high-bandwidth memory , but even if it receives quality certification from major client NVIDIA during the second quarter, it will likely take time before those results are reflected in earnings. Tariffs from the U.S. are another variable. The U.S. has set a 46 percent reciprocal tariff rate on goods from Vietnam, where Samsung produces over 50 percent of its smartphones. Although semiconductors are not currently subject to reciprocal tariffs, product-specific tariffs have been signaled. If reciprocal tariffs become a reality, Samsung will have to make a strategic decision to either accept lower profits or offset the burden by increasing consumer prices. Companies could expand production of products for the U.S. market in countries with lower tariffs. The Wall Street Journal reported that Apple plans to export more iPhones to the U.S. from India, where the tariff rate is 26 percent. 경제 많이 본 기사 An industry insider said, “There’s a high probability that the tariffs will reduce demand for finished goods and components in the global market,” adding, “The outlook for the second quarter is highly uncertain.” ※This article has undergone review by a professional translator after being translated by an AI translation tool.

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