News

[News] Samsung Q1 Profit Surges Above Expectations as Tariff Fears Reportedly Boost Chip and Smartphone Sales


2025-04-08 Consumer Electronics / Semiconductors editor

Despite market uncertainty from Trump’s tariff threats and its HBM3E progress with NVIDIA, Samsung reported a better-than-expected first-quarter operating profit on Tuesday, driven by strong memory chip sales and solid smartphone demand, according to Reuters.

Samsung, currently reorganizing its leadership after the sudden passing of co-CEO Han Jong-Hee last month, is set to unveil detailed earnings by business segment on April 30, as noted by Reuters.

According to Samsung’s press release, first-quarter sales are expected to land between 78 and 80 trillion won, slightly above the 75.79 trillion won recorded in Q4 2024. Operating profit is estimated at 6.6 trillion won (roughly $4.5 billion), well above the 5.1 trillion won forecast by LSEG SmartEstimate, as per Reuters.

TrendForce attributes these results primarily to strong server DRAM shipment, which partly offset the decline in conventional DRAM and NAND Flash Prices.

According to TrendForce, in 1Q25, industry conventional DRAM market contract prices are estimated to fall by 8–13%, and industry NAND Flash market contract prices are also estimated to decline by 15–20%. However, Samsung saw strong purchase momentum from a few US and Chinese CSPs for server DRAM, on data center investment, and pull-in effect regarding potential US tariffs.

Galaxy S25 Shipments May Dip in Q2

Another Bloomberg report suggests that Samsung’s Galaxy S25, launched in January with AI features, boosted sales as well, thanks to preemptive shipments from North American customers ahead of tariffs.

However, Reuters warns that while Samsung’s smartphone shipments rose in Q1, the pulled-forward demand could lead to a dip in Q2 shipments.

Last week, U.S. President Donald Trump rolled out new tariffs on trade partners like China. While chips were initially spared, he reiterated that semiconductor tariffs are coming soon, driving customers to stockpiling related products.

Prior to this, the South Korean memory giant has reportedly joined the wave of price hikes, following in the footsteps of Micron and SanDisk. According to South Korean media outlet Pulse, Samsung Electronics is set to hike DRAM and NAND flash prices by 3 to 5%, with negotiations already underway with global clients.

Read more

(Photo credit: Samsung)

Please note that this article cites information from ReutersBloombergPulse and Samsung.

Get in touch with us