Samsung Q1 2025 Earnings: $4.89 Billion Profit Driven by Galaxy S25 Surge as Semiconductor Woes Persist

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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.

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

What was Samsung’s revenue in Q1 2025?

Samsung reported $57.36 billion in revenue for Q1 2025.

How much profit did Samsung make in 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

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