Samsung Reports Strong Q1 Results, Warns of Tariff Impact

Samsung's mobile division reported double-digit sales growth in the first quarter and rising profit. The tech giant, however, expects to lower its smartphone forecast as uncertainty over tariffs lingers.

The company's MX division VP, Daniel Araujo, warned of the potential for adjustments in its Q2 forecast due to global tariff policies. The Mobile eXperience (MX) business expects a decrease in smartphone shipments and ASP due to the fading effects of its new flagship model launches.

Given the macroeconomic uncertainty caused by US tariff policies, he added that the company predicts the smartphone market will decline year-on-year in the second half. The tablet market will also see slower growth, but premium demand is expected to remain robust.

Q1 sales in the MX and Networks unit rose 10% to KRW37 trillion ($26 billion), with operating profit improving 22.9% to KRW4.3 trillion. Smartphone shipments were up 1.7% to 61 million units, while tablet shipments were stable at 7 million. Smartphone's average selling price dipped 3% to $326.

On a group level, Samsung’s net profit grew 21.7% to KRW8.2 trillion, while revenue increased 10% to KRW71.9 trillion, a quarterly record. Sales in its Device Solution division, covering all types of chips including memory, rose 8.7% to KRW25.1 trillion, but operating profit dropped 42.1% to KRW1.1 trillion. Samsung increased its R&D spending in the quarter by 16% to KRW9 trillion.