Samsung Electronics has reported a 5.8 percent decline in quarterly revenue, with consolidated sales falling to ₩74.6 trillion and operating profit dropping to ₩4.7 trillion for the second quarter ended June 30, 2025.
The dip underscores the combined impact of softer smartphone sales and mounting costs linked to export restrictions affecting its semiconductor business.
The company’s earnings reflect a mixed performance across its divisions, as strong demand for high-performance memory chips and continued momentum in premium displays were offset by market uncertainties and one-off expenses in key business units.
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The Device eXperience (DX) division, which includes Samsung’s mobile and consumer electronics units, reported a sequential decline in smartphone shipments after the early-year launch of the Galaxy S25 series. While year-on-year revenue and operating profit still rose due to solid demand for the Galaxy A series and tablets, the absence of major new releases in Q2 led to reduced volumes.
Samsung’s semiconductor arm (DS Division) posted ₩27.9 trillion in revenue and ₩0.4 trillion in operating profit for the quarter. The Memory Business saw increased sales of high-density DDR5 and HBM3E chips, driven by the resurgence of data center projects and strong AI-related demand. However, inventory value adjustments and one-off costs related to U.S. export controls on advanced chips to China significantly weakened profitability.
Looking ahead, Samsung expects continued momentum in AI server demand through the second half of the year. The company plans to expand production of high-value chips, including 24Gb GDDR7 and 8th Gen V-NAND SSDs, to meet growing requirements from hyperscale cloud providers. It also intends to ramp up 2nm Gate-All-Around (GAA) SoC production in its Foundry Business to improve utilization rates and offset export-related headwinds.
In the display segment, Samsung Display Corporation (SDC) generated ₩6.4 trillion in revenue and ₩0.5 trillion in operating profit, boosted by increased shipments of mobile OLED panels and QD-OLED monitors. Demand in the gaming and IT sectors contributed to strong monitor sales, and the company is eyeing further growth tied to upcoming smartphone launches and its differentiated technology in the premium display market.
The Mobile eXperience (MX) business posted ₩29.2 trillion in revenue and ₩3.1 trillion in operating profit, maintaining double-digit margins.
Despite a quarter-on-quarter drop in shipments, Samsung said it remains focused on its flagship-first strategy, with an emphasis on foldables, AI integration, and expanding its ecosystem through wearables and extended reality devices.
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Meanwhile, the visual display and digital appliances unit reported ₩14.1 trillion in revenue and ₩0.2 trillion in operating profit, with earnings pressured by global competition and subdued consumer demand.
Still, Samsung aims to capture seasonal demand in the latter half of the year with its premium TV lineup enhanced by AI features and services such as SmartThings and Samsung TV Plus.
