SEOUL, South Korea (AP) — Samsung Electronics announced a significant increase in its consolidated revenue for the first quarter of 2025, driven primarily by strong sales of its recently launched smartphones. The company reported a record-breaking 79.14 trillion won (approximately $56 billion) in consolidated revenue for the January-March quarter, marking it as an all-time high for any quarterly performance. In addition, Samsung's operating profit also saw an uptick, reaching 6.7 trillion won (around $4.7 billion), which is an increase from the 6.61 trillion won ($4.6 billion) reported during the same period the previous year.
Samsung attributed this impressive performance largely to the robust sales of its flagship Galaxy S25 smartphone, as well as other high-value-added products within its portfolio. The successful launch of the Galaxy S25 not only appealed to consumers but also contributed significantly to the company's overall revenue growth during this quarter.
Despite the overall positive news, Samsung's semiconductor division faced challenges that impacted its profits. The operating profit for the semiconductor business decreased to 1.1 trillion won (approximately $774 million), down from 1.91 trillion won ($1.3 billion) in the corresponding quarter of the previous year. This decline indicates a setback within a critical segment of Samsung's operations, underlining the volatility often associated with the semiconductor market.
The company reported that its semiconductor profits were adversely affected by a combination of factors. One major contributor was the falling average sale prices, which typically results from increased competition and market saturation. Additionally, there has been a notable reduction in demand for high-bandwidth memory chips, as potential customers have opted to postpone purchases in anticipation of the upcoming release of next-generation memory technologies. This behavior illustrates the cyclical nature of the tech industry, especially within semiconductor markets where innovation drives consumer purchasing decisions.
Overall, while Samsung Electronics has experienced a remarkable start to the year with record revenue and operating profits in its smartphone segment, its semiconductor division struggled against market pressures that are likely to impact its strategy moving forward. The contrasting results between these two business units highlight the diversified nature of Samsung’s operations, as well as the challenges that come with leading in highly competitive markets.
