Samsung Reports Revenue Growth, Offers Cautious Forecast Due to Tariff-Related Concerns
In a nail-biting announcement, Samsung Electronics just reported an impressive quarterly revenue record, thanks to their new smartphones' blockbuster sales and high-value products. However, tucked away in the statement was a glaring warning about economic uncertainty as a result of US President Donald Trump's trade policies.
Flaunting a staggering consolidated revenue of 79.14 trillion won (€49 billion), Samsung labeled this quarter as their highest-ever, reaping the benefits of strong Galaxy S25 smartphone sales. Operating profit also surged, hitting 6.7 trillion won (€4.1bn), marking an improvement over the same period last year.
The hero, however, isn't solely the smartphone giant's flagship device. Other premium products have also contributed significantly to the total revenue. On the flip side, Samsung's semiconductor business took a hit, with operating profits dipping to 1.1tn won (€681.3 million). The culprits? Falling average sale prices and reduced demand for high-bandwidth memory, as clients wait for the arrival of next-generation memory chips.
The call to action? Samsung went the extra mile to issue a stern warning about US tariffs could jeopardize sales in their memory chip and smartphone sectors. True to Trump's word, he's planning to impose tariffs on semiconductors "very soon." To make matters worse, Samsung admitted that the exact impact of these tariffs remains uncertain.
In spite of the challenge, Samsung's shares closed the day with a minor dip of approximately 0.5%. It's clear that the semiconductor titan stands before a transformative moment, bracing for the tidal wave of economic uncertainties.
For Your Interest:
- Mediobanca Launches Bid for Banca Generali Amidst Intensifying M&A Scene
- Apple Plans to Shift US iPhone Assembly to India, Dealing a Blow to China
- Nintendo Switch 2 Pre-Orders Surge as Tariff Price Hike Fears Loom
- Keywords: Donald Trump, Electronic chip, Chip, Semiconductor, tariffs, Samsung
- Additional Insights: Impact of US tariff policy on Samsung: Approximately a 10% reciprocal tariff could be imposed on non-excluded components, indirectly increasing production costs; Reduced demand due to price increases passed on to consumers; Complex supply chain management to avoid misclassified goods and potential tariff liabilities; Partial relief through exemptions for data processing systems and display modules.
Samsung's warning about US tariffs could potentially harm sales in their memory chip and smartphone sectors, as President Donald Trump plans to impose tariffs on semiconductors "very soon." This comes as Samsung reported a record quarterly revenue of 79.14 trillion won (€49 billion), largely driven by strong smartphone sales. However, the impact of these tariffs remains uncertain. In the industry, businesses like LinkedIn are closely monitoring the situation, as the electronic chip sector seems to be heavily affected by such trade policies.
