Sales of Galaxy S25 boost Samsung's profit by 21.7%

Samsung Electronics has released its financial report for the first quarter of 2025: the company's net profit increased by 21.7% compared to the same period last year.

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Total revenue amounted to 79.14 trillion won (~$55.66 billion), and operating profit was 6.7 trillion won (~$4.71 billion).

Strong sales of the flagship Galaxy S25 smartphone series were the key growth driver. Samsung's MX mobile division achieved sales of 37 trillion won (~$26 billion) and a profit of over 4.3 trillion won (~$3.02 billion). In general, the DX division (mobile devices, TV and home appliances) increased its revenue by 28% to 51.7 trillion won (~$36.34 billion).

Despite the overall growth, the chip business continues to face pressure. Sales of this division decreased by 17% to 25.1 trillion won (~$17.63 billion), and profit amounted to 1.1 trillion won (~$772 million). One of the key factors was the lack of certification of HBM3E chips from Nvidia. This hinders the company's competitiveness in the strategic direction of high-speed memory.

The situation in the contract chip manufacturing segment remains challenging, with Samsung Foundry experiencing pressure from the seasonal decline and underutilisation of its production capacity. In contrast, the System LSI division, which is responsible for the development of Exynos and ISOCELL cameras, is showing moderate growth. The 50- and 200-megapixel sensors, which are used in telephoto and ultra-wide-angle cameras by other smartphone brands, are selling particularly well.

In the second half of 2025, the company expects improvements: the launch of Galaxy S25 Edge, new HBM3E chips and the Galaxy Flip 7 and Fold 7 line of foldable smartphones are on the way.

Source: SamMobile