Samsung Electronics’ first-quarter financial performance showcased a notable step forward in revenue growth, driven by robust demand across its consumer electronics and semiconductor segments.
The company reported preliminary sales of 79 trillion won, a 9.8 percent increase from the same period last year. A key catalyst for this revenue growth was the launch of the Galaxy S25 smartphones, which debuted in February and saw strong early adoption, thanks in part to their enhanced AI capabilities, Yonhapp news report said.
Samsung earlier announced that preorders for its Galaxy S25 series, released on January 22, reached 1.3 million units between January 24 and February 3, surpassing the 1.21 million preorders of the previous model.
The Galaxy S25 Ultra, the most expensive in the lineup, was the top choice, making up 52 percent of preorders, while the Galaxy S25 and S25 Plus accounted for 26 percent and 22 percent, respectively.
Samsung’s operating profit of 6.6 trillion won was lower by 0.15 percent in Q1 2025. Some of this upside was attributed to increased sales of conventional and AI-related memory chips, as certain customers moved to build up inventories ahead of potential U.S. tariff implementations. This purchasing behavior temporarily boosted shipment volumes and played a vital role in propping up revenues despite a broader dip in general memory pricing.
The chip division, while reportedly facing pressures from losses in its foundry operations and weaker-than-expected performance in high bandwidth memory (HBM), still managed to generate an estimated 800 billion to 1 trillion won in operating profit.
The shortfall in HBM results was largely due to Samsung’s delayed qualification with client Nvidia, a segment where rivals SK Hynix and TSMC currently dominate. Despite these headwinds, the memory unit benefited from strong demand for DDR5 and NAND flash products, with expectations of price recovery and increased shipments continuing into the next quarter, Reuters news report said.
The smartphone business, on the other hand, contributed significantly to revenue growth, buoyed by the early success of the Galaxy S25 series. Enhanced AI features and favorable international market timing enabled Samsung to outperform competitors like Apple and various Chinese manufacturers in Q1, especially as North American distributors rushed orders to beat possible tariff increases. This front-loading of demand may create some softness in Q2, but it clearly helped Samsung boost first-quarter sales.
Looking ahead, Samsung’s revenue will likely depend on several dynamic factors. While the recovery of memory prices and potential ramp-up in HBM chip shipments later in the year offer upside, geopolitical uncertainties — especially involving U.S. trade policy — and internal challenges like the recent executive reshuffle could introduce volatility. If Samsung secures Nvidia orders for its HBM3E 12-high chips as expected by mid-year, it may position itself for a stronger second half in both top-line growth and profitability.
Baburajan Kizhakedath
