What you might want to know
- Samsung introduced its Q1 earnings, with a consolidated income of 79.14 trillion gained ($56 billion), which is up 10% from 2024.
- Regardless of an excellent quarter, the corporate’s DS division noticed a dip in income, which was round 1.1 trillion Korean gained, down from 1.91 trillion gained.
- Samsung expects to see a greater second half of the yr, and stated it is going to give attention to innovation (together with foldables) and new areas like robotics and AI regardless of international commerce uncertainty.
Samsung Electronics introduced its Q1 earnings on Wednesday (April 30), and it looks as if the corporate ended this quarter on a excessive notice. The Korean OEM stated its consolidated income from January to March 31 was 79.14 trillion gained ($56 billion), which is up 10% from 2024 (78.1 trillion Korean gained). And the corporate’s inventory costs fell by 0.5% in keeping with Google Finance.
The corporate additionally said that its first-quarter working income was as much as 6.7 trillion Korean gained, which is round $4.7 billion, 1.5% increased than final yr (6.4 trillion Korean gained). Samsung said that this rise in income is all due to the brand new Samsung Galaxy S25 collection gross sales and high-value-added house home equipment.
This implies that the Samsung Galaxy S25 collection, which launched in January, has been fairly widespread amongst smartphone fanatics as it’s bolstered with Samsung’s newest Galaxy AI and different highly effective specs.
Nonetheless, the working revenue of the corporate’s DS division, which is liable for manufacturing semiconductors, noticed a decline in income. The corporate introduced 1.1 trillion Korean gained in income for its DS division within the first quarter, down from 1.91 trillion gained reported throughout the identical time final yr.
“For the Reminiscence Enterprise, income was pushed by expanded server DRAM gross sales and the addressing of further NAND demand amid a perceived bottoming out of the market worth,” the corporate stated.
For these unaware, DRAM and NAND are two basic varieties of semiconductors which are used extensively in CPUs, GPUs, computer systems, and different trendy electronics, which run AI on them.
Samsung stated in its earnings assertion that regardless of promoting extra chips this quarter, it noticed a dip in income as a result of decrease common promoting worth (ASP). Moreover, they did not promote as a lot of their AI reminiscence (HBM) chips as a result of “export controls on AI chips and deferred demand in anticipation of upcoming enhanced HBM3E merchandise.”
Rising tensions as a result of US tarrifs
In the course of the earnings name, Samsung’s management indicated that, as a result of current international financial pressure, together with the reciprocal tariffs imposed by the U.S., the corporate had taken a direct hit.
This “led to a slowdown in progress and elevated fluctuations in monetary markets, elevating considerations in regards to the efficiency of tech firms, particularly within the semiconductor business.”
Wanting forward, the corporate stated that regardless of the unsure commerce state of affairs, it “will proceed to launch top-tier revolutionary services to beat the challenges and keep our place as a number one tech firm.”
The corporate confirmed that will probably be taking a look at different areas of innovation and likewise department out into new areas like robotics and AI, which can assist them sustain with the unstable monetary setting.
Talking of the yr forward, Samsung said that its total efficiency is predicted to enhance within the second half of the yr. Yearly, Samsung launches its foldables round July, and we’re anticipating to see the identical occurring this yr as properly, which may nudge the corporate’s efficiency in a greater route. This is what we anticipate to see in the course of the mid-year Samsung Galaxy Unpacked.
