Corporate Logo(source: samsung.com)
Samsung Electronics (005930) reported its lowest semiconductor operating profit since the fourth quarter of 2023, as inventory-related provisions and U.S. export restrictions on advanced AI chips to China weighed on its performance.
The company's overall operating profit shrank by more than 50% year-on-year, with weakening effects from new smartphone launches and intensified competition in the TV market also contributing to a decline in revenue. Nevertheless, Samsung remains hopeful that growth in the AI and robotics sectors will help improve market conditions in the second half.
On July 31, Samsung Electronics announced consolidated revenue of 47.5663 trillion won for the second quarter, marking a 0.67% increase from the same period a year earlier. Operating profit, however, fell 55.23% year-on-year to 4.6761 trillion won.
The decline in profitability was primarily due to inventory valuation losses in the memory segment and provisions related to U.S. restrictions on non-memory semiconductor sales to China. Compared to the previous quarter, operating profit declined by approximately 800 billion won.
In the Device eXperience (DX) division, which includes smartphones and TVs, revenue fell 16% quarter-on-quarter as the impact of new smartphone launches faded and competition in the TV market intensified. Operating profit for the segment dropped by around 1.4 trillion won during the same period.
The Device Solutions (DS) division, responsible for the semiconductor business, posted revenue of 27.9 trillion won and operating profit of 400 billion won—its lowest since the 2 trillion won loss recorded in the fourth quarter of 2023.
The DX division recorded revenue of 43.6 trillion won and operating profit of 3.3 trillion won. While smartphone shipments declined compared to the first quarter—when new models were released—solid demand for flagship models led to year-on-year growth in both revenue and profit. The division also maintained double-digit profitability through resource optimization efforts.
Looking ahead, Samsung expects global growth to slow in the second half of the year due to ongoing uncertainties in the global trade environment and geopolitical risks. However, the company anticipates a gradual recovery in market conditions driven by continued expansion in the AI and robotics sectors.
*[KOSPI] Samsung Electronics(005930) is the top company in the KOSPI, dominating the global market in semiconductors and smartphones. Its market capitalization is 430.358 trillion won (as of July 30, 2025, closing price).
Corporate Logo(source: samsung.com)
Samsung Electronics (005930) reported its lowest semiconductor operating profit since the fourth quarter of 2023, as inventory-related provisions and U.S. export restrictions on advanced AI chips to China weighed on its performance.
The company's overall operating profit shrank by more than 50% year-on-year, with weakening effects from new smartphone launches and intensified competition in the TV market also contributing to a decline in revenue. Nevertheless, Samsung remains hopeful that growth in the AI and robotics sectors will help improve market conditions in the second half.
On July 31, Samsung Electronics announced consolidated revenue of 47.5663 trillion won for the second quarter, marking a 0.67% increase from the same period a year earlier. Operating profit, however, fell 55.23% year-on-year to 4.6761 trillion won.
The decline in profitability was primarily due to inventory valuation losses in the memory segment and provisions related to U.S. restrictions on non-memory semiconductor sales to China. Compared to the previous quarter, operating profit declined by approximately 800 billion won.
In the Device eXperience (DX) division, which includes smartphones and TVs, revenue fell 16% quarter-on-quarter as the impact of new smartphone launches faded and competition in the TV market intensified. Operating profit for the segment dropped by around 1.4 trillion won during the same period.
The Device Solutions (DS) division, responsible for the semiconductor business, posted revenue of 27.9 trillion won and operating profit of 400 billion won—its lowest since the 2 trillion won loss recorded in the fourth quarter of 2023.
The DX division recorded revenue of 43.6 trillion won and operating profit of 3.3 trillion won. While smartphone shipments declined compared to the first quarter—when new models were released—solid demand for flagship models led to year-on-year growth in both revenue and profit. The division also maintained double-digit profitability through resource optimization efforts.
Looking ahead, Samsung expects global growth to slow in the second half of the year due to ongoing uncertainties in the global trade environment and geopolitical risks. However, the company anticipates a gradual recovery in market conditions driven by continued expansion in the AI and robotics sectors.
*[KOSPI] Samsung Electronics(005930) is the top company in the KOSPI, dominating the global market in semiconductors and smartphones. Its market capitalization is 430.358 trillion won (as of July 30, 2025, closing price).