South Korean electronics maker Samsung Electronics saw its operating profit fall 0.2 percent year-on-year to 6.6 trillion won (CZK 103 billion) in the first quarter of this year, according to preliminary data. But the results were much better than analysts expected, helped mainly by sales of memory chips and smartphones. Customers bought more amid fears of the introduction of more US tariffs. The company said in a press release today.
Possible introduction of US tariffs
Analysts had expected profits to fall to 5.1 trillion won, according to LSEG SmartEstimate. The firm’s revenue in the quarter increased nearly 10 percent to 79 trillion won. Samsung will release detailed results on April 30.
Sales of memory chips used in consumer devices such as smartphones and sales of artificial intelligence (AI) chips were apparently better than expected. Some customers were stockpiling ahead of the possible imposition of US tariffs on semiconductors, according to analysts.
Chip production
“While prices of general memory chips fell, strong demand from customers looking to secure inventories ahead of possible U.S. tariffs helped boost Samsung’s memory chip shipments, which boosted overall results, ” said Greg Roh, an analyst at Hyundai Motor Securities. He added that smartphone shipments to the U.S. ahead of the tariffs and the AI feature in the Galaxy S25 smartphone model the company introduced in January likely contributed to the first-quarter results.
Analysts have estimated that Samsung’s chip division profit halved year-on-year in the first quarter, which would translate to roughly 800 billion won. Custom chip production apparently ended in a loss, but memory chip businesses posted a profit, they said. Samsung makes chips for companies such as Nvidia, Qualcomm and AMD. In January, Samsung warned of slow sales of its AI chips in the first quarter due to U.S. restrictions on exports to China, Samsung’s main market.
Source: ČTK
