Record-Breaking Samsung Performance Driven by Semiconductors... Diverging Fortunes for Home Appliances and Mobile

Company-wide Revenue Reaches 133.9 Trillion Won, Operating Profit Hits 57.2 Trillion Won
Memory Price Surge Expected to Sustain Bright Outlook in Q2
Set Division's Profitability Challenges Remain Unresolved

Samsung Electronics set a new milestone in the first quarter of this year by achieving the highest quarterly performance in its history, driven by a golden era for memory semiconductors. However, while the semiconductor (DS) division recorded extraordinary results, the set (DX) division continued to struggle with profitability, resulting in contrasting performance between the two segments.

On April 30, Samsung Electronics announced its first-quarter results via a public filing. On a consolidated basis, revenue stood at 133.8734 trillion won and operating profit at 57.2328 trillion won, representing increases of 69.16% and 756.10%, respectively, compared to the same period last year. Both revenue and operating profit set new all-time quarterly records, surpassing the previous records achieved in the last quarter, when revenue and operating profit reached 93.8374 trillion won and 20.0737 trillion won, respectively. Net profit for the period came to 47.2253 trillion won, up 474.31% year-on-year.

Yonhap News Agency

The clear driver behind this 'earnings surprise' was the Device Solutions (DS) division. Responsible for the semiconductor business, the DS division led company-wide performance by posting first-quarter revenue of 81.7 trillion won and operating profit of 53.7 trillion won.

Amid explosive demand for memory semiconductors fueled by the AI boom, Samsung Electronics became the first in the industry to begin mass production of sixth-generation high bandwidth memory (HBM4) for Nvidia's Vera Rubin platform in February, reaching the highest quarterly performance ever. In addition, a 'super cycle' saw the prices of general-purpose DRAM and NAND flash surge by nearly 90% year-on-year, setting a record operating margin of 66%.

Samsung Electronics stated, "To solidify our technological leadership, we plan to supply the first samples of HBM4E (seventh-generation) within the second quarter of this year," adding, "We will also actively respond to initial memory demand for new GPUs and CPUs scheduled for release in the second half."

In the non-memory segment, System LSI saw improved performance due to expanded sales of flagship system-on-chips (SoCs), while the foundry (semiconductor contract manufacturing) division saw its results decline due to seasonal factors. Industry sources estimate that the non-memory segment reduced its first-quarter losses by about half, to around 1 trillion won. For the foundry, continued orders in the high-performance computing market and successful contracts with major optical communications module companies have raised the possibility of turning a profit in the first half of the year.

In contrast to the festive mood in the semiconductor division, the Device eXperience (DX) division, responsible for smartphones, home appliances, and TVs, faced a more challenging environment. In the first quarter, DX revenue reached 52.7 trillion won, with operating profit at 3 trillion won. While revenue saw a slight increase, profitability issues persisted.

By business unit, robust sales of the Galaxy S26 series drove growth in revenue and operating profit for the Mobile eXperience (MX) division. However, the home appliance segment—despite the launch of new air conditioner models—saw only limited improvement due to rising costs and tariff impacts. The network business also posted weaker results compared to the previous quarter, reflecting reduced investment from major telecom operators. The Visual Display (VD) division, on the other hand, improved profitability through solid sales of premium and large TVs and enhanced operational efficiency.

In the second quarter of this year, the MX division is expected to see a decline in revenue compared to the previous quarter due to lessened impact from new model launches. Nevertheless, the company plans to drive revenue growth year-on-year by expanding flagship sales and introducing new Galaxy A series models. The VD division aims to capture demand from global sporting events with an enhanced lineup, including micro RGB TVs. The home appliance segment will focus on boosting sales of new products such as the Bespoke AI Combo and plans to drive revenue growth by responding to peak air conditioner season demand.

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