Samsung Electronics has achieved a significant financial milestone in the first quarter of 2025, posting record-breaking revenue of KRW 79.14 trillion ($55.4 billion). This represents a 10% increase year-over-year, despite facing challenges in the semiconductor market and ongoing global trade uncertainties.
The company’s operating profit for the quarter rose to KRW 6.7 trillion ($4.68 billion), reflecting a modest 1.5% uptick from the previous year. A major driver of this success has been Samsung’s Mobile Experience (MX) Business, which saw a remarkable performance with consolidated revenue of KRW 37 trillion and operating profit of KRW 4.3 trillion—the highest in four years.
This achievement was largely fueled by robust sales of the Galaxy S25 series, which incorporates advanced AI features via Galaxy AI. Improvements in cost efficiency and a decrease in component prices further supported their profitability.
Conversely, Samsung’s Device Solutions (DS) Division reported KRW 25.1 trillion in revenue and KRW 1.1 trillion in operating profit, a 42% decline from the previous year. This downturn is attributed to challenges in the semiconductor market, particularly in high-bandwidth memory (HBM) sales, affected by export controls and a decline in average selling prices.
Looking ahead, Samsung has adopted a cautious stance for the second quarter, driven by destabilizing global trade relations and macroeconomic conditions. The company has expressed concern over US tariffs that could potentially disrupt its operations, despite current exemptions for its flagship products.
In terms of future strategy, Samsung is doubling down on its investments in artificial intelligence, with a notable increase in research and development spending for 2024. Throughout 2025, it plans to expand its AI-driven smartphone offerings and enhance its semiconductor portfolio to capture growth in high-demand areas.
Despite the positive revenue growth, investor sentiment remains cautious, as Samsung faces increasing competition in the semiconductor market, particularly from rivals like SK Hynix, which recently reported strong gains in DRAM revenues. The coming quarters will be critical for Samsung, as its ability to navigate these challenges will determine its position in the evolving landscape of AI technology and semiconductor manufacturing.