Samsung Electronics has projected a year-on-year decline in the global smartphone market for the second half of 2025, citing macroeconomic uncertainty linked to U.S. tariff policies.
In its First Quarter (Q1) 2025 Report released on Wednesday, the company highlighted concerns about global trade conditions and their potential effect on demand and supply chains.
Samsung’s Corporate Mobile eXperience Vice President, Daniel Araujo, was quoted in the report as saying this in relation to the company’s market outlook.
During its earnings call, Araujo indicated that the company may revise its Q2 forecast based on the evolving global tariff landscape.
He also noted that smartphone shipments from Samsung’s Mobile eXperience (MX) business are expected to dip as the momentum from recent flagship model launches begins to wane.
In addition, Araujo pointed out that the tablet market is projected to experience slower growth, although demand for premium devices is expected to remain strong.
Despite these market challenges, Samsung recorded robust financial performance in Q1 2025, posting a record consolidated revenue of KRW 79.14 trillion (N89.20 trillion) for the quarter ending March 31. The company also reported an operating profit of KRW 6.7 trillion (N7.5 trillion), withstanding headwinds in its Device Solutions (DS) Division.
The DS division contributed KRW 25.1 trillion (N28.2 trillion) in revenue and KRW 1.1 trillion (N1.2 trillion) in operating profit, bolstered by stronger server DRAM and NAND demand. However, it noted earnings were weighed down by falling average selling prices and reduced High Bandwidth Memory (HBM) sales.
Samsung increased its Research and Development spending by 16% year-on-year, investing KRW 9 trillion (N10.1 trillion) in innovation during the quarter.
Looking ahead, Samsung expects improved performance in the latter half of 2025, particularly within its semiconductor division, which is being driven by demand for AI server chips and other high-value-added products.
The MX business also saw revenue growth during the quarter, spurred by strong sales of the Galaxy S25 series.
Samsung Display Corporation (SDC) reported KRW 5.9 trillion (N6.65 trillion) in revenue and KRW 0.5 trillion (N563.9 billion) in operating profit, while the Visual Display and Digital Appliances units brought in KRW 14.5 trillion (N16.4 trillion) in revenue and KRW 0.3 trillion (N338.4 billion) in operating profit.
For Q2 2025, the MX business plans to expand its foldable phone lineup with a focus on differentiated AI experiences. It also aims to launch new ecosystem products featuring enhanced AI and health features, while exploring emerging segments such as extended reality (XR).
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