Slow Q2 for Samsung; H2 Outlook Suggests Drop in Mobile

In the second quarter of 2025, Samsung reported flat revenue of KRW74.1 trillion ($53.3 billion). Net profit dropped 49% to KRW4.9 trillion, as the operating profit of the Device Solution division, covering all types of chips including memory, plummeted to KRW400 billion from KRW6.5 trillion a year earlier.

Samsung's mobile division cautioned that global demand for smartphones and tablets would weaken in H2. On its Q2 earnings call, Mobile eXperience (MX) VP Daniel Araujo warned smartphone demand in H2 is expected to contract slightly due to concerns about rising tariffs in advanced markets and a continued slowdown driven by persistent inflation. However, he added, the premium segment is forecast to grow modestly, driven by shifting consumer preferences toward higher-end products, due in part to economic growth in emerging markets. The tablet and wearable markets are expected to decline due to macroeconomic uncertainties.

Q2 sales in Samsung’s MX and networks unit increased 7% to KRW29.2 trillion. This was supported by strong sales of flagship products, particularly the Galaxy S25 line-up, the A series, and tablets. Operating profit was stable at KRW3.1 trillion. Smartphone shipments improved 7.4% to 58 million units, while tablet shipments were stable at 7 million. Smartphone average sale price slipped 2.3% to $270. Araujo noted some components, including memory and displays, registered a slight decline in price over the last year. The company said its network business hit revenue targets and recovered competitiveness by securing new orders after improving cost efficiencies.