Samsung Operating Profit Expected to Drop

Samsung’s operating profit in the opening quarter of 2025 is expected to drop sharply. The main drivers for the dip are US trade restrictions slowing chip sales to China and increasing competition for traditional memory chips.

Yonhap News Agency compiled earnings forecasts from a range of brokerage companies to come up with a projection, predicting the vendor’s operating profit to decline 27.8% year-on-year to KRW 4.7 trillion ($3.2 billion). Its chip division is expected to break even or post a loss in Q1 but to rebound in Q2.

Samsung is scheduled to release its Q1 guidance in early April. The company’s 4Q24 net profit grew 23.8% to KRW 7.8 trillion, while revenue rose 11.8% to KRW 75.8 trillion. Its chip division booked 39% growth in sales to KRW 30.1 trillion while operating profit was up 5% to KRW 2.9 trillion.