Samsung Electronics has forecast a year-on-year decline in the global smartphone market in the second half of 2025, citing rising macroeconomic uncertainties driven by U.S. tariff policies.
In its First Quarter (Q1) 2025 financial report, released Wednesday, Samsung’s Corporate Vice President for Mobile eXperience (MX), Daniel Araujo, noted that global trade tensions and evolving tariff regimes could lead to adjustments in the company’s second-quarter outlook.
Araujo added that Samsung’s MX business also expects a decrease in smartphone shipments due to waning momentum following the launch of its flagship Galaxy S25 series.
“The tablet market is also likely to experience slower growth,” Araujo said, “although demand for premium devices is expected to remain strong.”
Despite these headwinds, Samsung posted a record consolidated revenue of KRW 79.14 trillion (₦89.20 trillion) for Q1 2025, alongside an operating profit of KRW 6.7 trillion (₦7.5 trillion).
The company’s Device Solutions (DS) division contributed KRW 25.1 trillion (₦28.2 trillion) in revenue and KRW 1.1 trillion (₦1.2 trillion) in operating profit. However, earnings were impacted by declining average selling prices and reduced sales of High Bandwidth Memory (HBM).
“Growth in server DRAM and additional NAND demand helped drive revenue,” the report stated.
Samsung increased its Research and Development spending by 16% year-on-year, reaching KRW 9 trillion (₦10.1 trillion) in Q1.
Looking ahead, Samsung expects an improved performance in the second half of the year, fueled by growing demand for AI servers and high-value-added semiconductor products.
The MX business saw revenue growth in Q1, largely driven by robust sales of the Galaxy S25 series, while the Samsung Display Corporation (SDC) posted KRW 5.9 trillion (₦6.65 trillion) in revenue and KRW 0.5 trillion (₦563.9 billion) in profit.
The Visual Display and Digital Appliances divisions reported a combined KRW 14.5 trillion (₦16.4 trillion) in revenue and KRW 0.3 trillion (₦338.4 billion) in operating profit.
In Q2, Samsung plans to expand its foldable smartphone lineup, introduce AI-driven ecosystem products with enhanced health features, and explore new product segments like Extended Reality (XR).
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