Samsung Q1 2025 Earnings: Samsung Electronics has kicked off 2025 with a mixed bag of financials, reporting a 1.2% year-on-year increase in operating profit, driven largely by the success of its Galaxy S25 smartphone series, but marred by struggles in its semiconductor and foundry businesses.
Table of contents
Samsung Q1 2025 Earnings: $4.89 Billion Profit Boosted by Galaxy S25 Sales, Despite Chip Division Losses
Q1 2025 Highlights: Revenue and Profit in Numbers
In Q1 2025, Samsung posted an all-time high quarterly revenue of KRW 79.14 trillion ($57.36 billion), while operating profit climbed to KRW 6.7 trillion ($4.89 billion) — a modest but meaningful 1.2% increase compared to the same period last year.
This marginal rise comes at a time when several of Samsung’s core business units face turbulent market conditions, but the smartphone division has emerged as a bright spot.
Galaxy S25 Powers Smartphone Division to 4-Year High
Samsung’s Mobile eXperience (MX) division reported an operating profit of KRW 4.3 trillion ($2.99 billion) — the highest in four years, marking a 23% year-on-year growth. The success was powered by strong demand for the Galaxy S25 and refreshed Galaxy A series, which helped Samsung reclaim the top spot in global smartphone shipments.
Samsung Q1 2025 Earnings: $4.89 Billion Profit Driven by Galaxy S25 Surge as Semiconductor Woes Persist
Samsung Beats Apple in Global Market
According to Canalys, Samsung shipped 60.5 million smartphones in Q1 2025, capturing a 20% global market share, just ahead of Apple’s 19%. Apple shipped 55 million units during the same period.
Despite slow overall growth in the smartphone industry (just 0.2% YoY), Samsung’s diversified portfolio and timely product launches gave it a competitive edge.
Semiconductor Sector Slips: Profit Plunges 42%
While mobile performed strongly, Samsung’s semiconductor division dragged overall performance. Operating profit fell by 42%, due to:
- Weak demand for high-bandwidth memory (HBM) chips
- Falling average selling prices (ASPs)
- U.S. export controls that hit global chip sales
- Growing competition from rivals like SK hynix
Samsung Q1 2025 Earnings: $4.89 Billion Profit Driven by Galaxy S25 Surge as Semiconductor Woes Persist
Samsung’s aggressive stockpiling of chips before U.S. tariffs provided a temporary earnings cushion, but the long-term impact of declining margins and export hurdles is becoming clear.
R&D & Foundry: Investing Amid Challenges
Samsung continues to invest heavily in future technologies, with R&D spending rising 16% to KRW 9 trillion ($6.3 billion). The display business contributed KRW 1.1 trillion ($770 million) in operating profit, remaining stable.
Meanwhile, the foundry division is facing yield and competitiveness issues. However, there’s hope:
- 2nm process trials for the Exynos 2600 reportedly achieved a 30% yield.
- Rumors suggest Qualcomm may partner with Samsung to mass-produce its next-gen Snapdragon 8 Elite Gen 2 on this node.
If confirmed, this could signal a turning point in Samsung’s foundry strategy later in 2025.
What’s Next for Samsung in 2025?
Samsung Q1 2025 Earnings: $4.89 Billion Profit Driven by Galaxy S25 Surge as Semiconductor Woes Persist
Looking ahead to H2 2025, Samsung plans to:
- Expand TV sales
- Deepen AI integration across product lines
- Leverage strategic partnerships with retail and distribution channels
Despite headwinds in chips, Samsung is betting big on diversification and innovation to sustain long-term growth.
Key Takeaways
- Q1 2025 Revenue: $57.36B (All-time high)
- Operating Profit: $4.89B (+1.2% YoY)
- Smartphone Division: $2.99B profit (+23%)
- Semiconductor Profit: Down 42%
- R&D Investment: $6.3B (+16%)
- Samsung Leads Global Smartphone Market with 60.5M units shipped
FAQs
Samsung reported $57.36 billion in revenue for Q1 2025.
Samsung earned $4.89 billion in operating profit.
Read more: Apple to Open New Stores in Noida and Pune – Big Expansion Plans for India Revealed
