In a positive turn for Samsung Electronics, the mobile division anticipates a rise in smartphone shipments during the first quarter of 2025. This increase is attributed to the soaring consumer interest in its latest Galaxy S25 premium series, following a weaker-than-expected fourth quarter of 2024.

Quarterly Financials Highlight Mixed Trends

The vendor’s Mobile eXperience and Networks unit registered a revenue increase of 3.1% year-on-year, reaching KRW25.8 trillion ($17.6 billion). However, operating profits declined sharply by 22.2% to KRW2.1 trillion. Notably, sales from the network unit fell by 20% to KRW800 billion.

Despite these challenges, smartphone shipments only saw a modest dip of 1.9% to 52 million units, while tablet sales remained steady at 7 million units. The average selling price (ASP) of smartphones crept up slightly to $260.

Expected Market Trends and Strategy

During the earnings call, Samsung MX VP Daniel Araujo expressed optimism for the current quarter, forecasting an increase in smartphone shipments and ASPs driven by the new flagship models. Tablet shipments are anticipated to remain stable.

Araujo acknowledged ongoing risks related to escalating costs of key components, underscoring Samsung’s commitment to enhancing operational efficiencies to achieve a double-digit operating margin.

Full-Year Outlook and Market Expansion

For the year ahead, Araujo anticipates a slight increase in the smartphone market, with artificial intelligence (AI) products playing a crucial role. The mass-market segment is projected to grow, benefiting from the incorporation of AI features in mid-range devices and advancements in hardware.

However, the growth rate of the premium segment is anticipated to decelerate slightly compared to 2024.

Group-Level Performance

At the group level, net profit increased by 23.8% to KRW7.8 trillion, while revenue rose 11.8% to KRW75.8 trillion. The semiconductor division delivered strong performance, recording a 39% sales growth to KRW30.1 trillion.

On the call, CFO Park Hark-kyu commented on the company’s awareness of the challenges it faces, emphasizing the commitment to overcoming current difficulties, particularly in the High Bandwidth Memory (HBM) segment.

Expert Analysis and Future Prospects

Radio Free Mobile founder Richard Windsor expressed confidence in Samsung’s return to form with its下一代 HBM product. Furthermore, he predicted that Nvidia would likely approve Samsung as a supplier this year.

Conclusion

Despite the recent challenges, Samsung continues to invest in innovation and operational efficiency. The anticipated growth in the AI market segment, particularly in mass-market devices, presents a promising opportunity for the company.