How did Samsung achieve a leap in revenue despite the pressure on the chips sector?

Samsung Electronics has announced that it has recorded record quarterly revenues during the first quarter of 2025, with the support of strong sales of its smartphones. But the company warned in the profit report that the uncertainty related to the trade policies of US President Donald Trump may shadow its upcoming results, according to the Euronews.

Standard profits led by Galaxy S25

Samsung said that the sales of the Galaxy S25 and other high -value products contributed to enhancing its financial performance, as the company recorded collected revenues of 79.14 trillion Korean (about 49 billion euros) from January to March 2025, which is the highest quarterly level of revenue in its history.
As for operational profits, it amounted to 6.7 trillion Won (4.1 billion euros), an increase of 6.61 trillion Won in the same period last year 2024, which reflects a slight improvement in the company’s total performance.
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Decline in the semiconductor sector

Despite the success of phone sales, Samsung suffered from a clear decline in the semiconductor sector. The operational profits of this sector decreased to 1.1 trillion Won (681.3 million euros), compared to 1.91 trillion Won in the first quarter of 2024.
The company attributed this decline to the decrease in medium sales prices, and the weak demand for high -range memory slices, in light of the market waiting for the new generation of these segments. Samsung also faces fierce competition from American and Chinese companies, most notably: Inviteia, Broadcast, and Microsoft, as well as Chinese companies as rising in the field of semiconductors.

Warnings about the effect of American customs duties

In its report, Samsung warned that the new customs duties that the Trump administration intends to impose on the chips sector may negatively affect its exports, especially in the memory and smartphones sectors. However, she indicated that the extent of influence is still unclear.
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President Trump recently stated his intention to impose customs duties on semiconductor “very soon”, which increased the state of anticipation within the sector globally.

Performing stocks in the South Korea market

Despite the announcement of the standard results, Samsung Electronics shares fell 0.5% when the market is closed in South Korea. This cautious decline that prevails in investors is due to fears of the future effects of American trade policies.
Samsung remains one of the largest and most important technology companies in the world, as it provides various products that cover a wide range of smart devices, slices, and advanced electronic solutions.