Samsung Electronics has released its financial results for the first quarter ending March 31, 2025. The company announced an all-time high in quarterly consolidated revenue, reporting KRW 79.14 trillion. This performance was primarily driven by robust sales of the Galaxy S25 smartphones and other high-value-added products. Operating profit also increased to KRW 6.7 trillion, despite challenges faced by the DS Division, which saw its quarterly revenue decline.
Samsung has committed to its highest-ever annual R&D expenditure for 2024, significantly increasing its R&D spending by 16% in the first quarter compared to the previous year, amounting to 9 trillion won. The company remains cautiously optimistic about future performance, acknowledging global trade tensions and economic slowdowns as complications, but it hopes for improved results in the second half of the year if uncertainties decrease.
The DS Division reported KRW 25.1 trillion in revenue and KRW 1.1 trillion in operating profit, with its Memory Business benefiting from increased server DRAM sales and additional NAND demand. However, earnings were impacted by a decline in the average selling price and reduced sales of HBM due to export controls on AI chips. Looking ahead, the Memory Business is optimistic about demand for AI servers and aims to strengthen its market position with a server-centric portfolio and enhanced HBM3E production.
The System LSI Business saw slight earnings improvement through increased sales of high-resolution sensors and LSI products amid a sluggish smartphone market. Plans for the second quarter include achieving steady revenue growth by securing SoC adoption for new flagship models and leveraging the expanding market for 200-megapixel sensors.
Earnings for the Foundry Business were subdued due to seasonal demand fluctuations and inventory adjustments. The business is focusing on the 2nm Gate-All-Around process, securing additional orders for sub-5nm nodes, particularly for AI and HPC applications. In the second quarter, the Foundry Business aims to stabilize 2nm process production and improve earnings by addressing strong demand in the US market.
Samsung Display Corporation (SDC) posted KRW 5.9 trillion in revenue and KRW 0.5 trillion in profit, with mobile display profits declining due to seasonality but large display improvements through new QD-OLED monitor products. SDC plans to grow mobile display sales with innovative products and strengthen its presence in both consumer and business markets with diverse offerings.
The MX and Networks businesses achieved KRW 37 trillion in revenue and KRW 4.3 trillion in operating profit. Growth was supported by the Galaxy S25 series, which experienced strong sales. The business plans to maintain sales with the upcoming Galaxy S25 Edge launch and expand its AI smartphone lineup.
The Visual Display and Digital Appliances businesses reported KRW 14.5 trillion in revenue and KRW 0.3 trillion in operating profit. Success in these areas came from strategic product sales, including Neo QLEDs and OLEDs, and improvements in cost efficiency. The businesses plan to capitalize on peak season demand with an enhanced AI TV lineup and strategic collaborations with distributors.