Despite GOS Controversy, Samsung Electronics Posts Solid Q1 Smartphone Results... What About Q2?

Galaxy S22 Series Success Sparks Optimism for Q2 Earnings

[Asia Economy Reporter Lim Hye-seon] Despite the controversy over the Game Optimizing Service (GOS), Samsung Electronics posted solid results in its smartphone business in the first quarter of this year. This was thanks to the successful launch of the Galaxy S22 series in February.

On the 28th, Samsung Electronics announced that the Mobile Experience (MX) division, responsible for the smartphone business, recorded sales of 32.37 trillion KRW and an operating profit of 3.82 trillion KRW. Although operating profit decreased by 13% compared to the same period last year, it increased by 40% compared to the previous quarter.

The Galaxy S22 series surpassed 1 million units sold domestically within 6 weeks, and global sales increased by more than 20% compared to its predecessor. Samsung Electronics analyzed that sales growth was particularly driven by the top-tier model, the Galaxy S22 Ultra.

A Samsung Electronics official explained, "Sales of new 5G models increased, and tablet and watch products also recorded steady sales, resulting in revenue growth and improved profitability compared to the previous quarter. The network business continued to respond to domestic 5G while expanding overseas operations."

Strong performance is also expected in the second quarter. Although international geopolitical uncertainties will persist, the supply situation of key components is improving, and the Galaxy S22 series is expected to maintain steady sales. Sales of new A series models are also expected to positively impact performance improvement. Along with this, Samsung Electronics forecasts securing double-digit profitability by minimizing the impact of economic uncertainties on the business through the use of a global supply chain (SCM).

This content was produced with the assistance of AI translation services.