Uneven Q2 performance for Samsung in mobile chips and screens sector

Samsung Expands Galaxy Ecosystem and Reports Strong Financial Performance

Samsung Electronics has announced its financial report for the second quarter of 2025, revealing a significant expansion of its Galaxy ecosystem and impressive financial results across its various businesses.

The Mobile eXperience (MX) and Networks businesses generated a consolidated revenue of KRW 29.2 trillion. The MX division, despite experiencing a decrease in smartphone shipments compared to the first quarter, managed to maintain solid double-digit profitability. The growth in revenue and operating profit was attributed to robust sales of the Galaxy S25 series, Galaxy A series, and Galaxy tablets.

The decline in shipments from Q1 to Q2 was due to the timing between the Galaxy S25 launch and the anticipated arrival of the Galaxy Z series foldables. Samsung plans to prioritize its new foldable devices and the S25 series in the second half of the year.

In a move that could revolutionize the tech industry, Samsung announced plans to introduce a new venture in the second half of 2025. This expansion will see the introduction of new form factors such as XR devices and "TriFold devices," possibly hinting at the Galaxy Z TriFold.

Meanwhile, the Device Solutions (DS) division reported KRW 27.9 trillion in revenue and KRW 0.4 trillion in operating profit. The memory business within the DS division recorded increased sales of HBM3E for server applications and a higher proportion of high-density DDR5 memory products.

However, the DS division had to adjust the value of its inventory, resulting in a one-time financial impact. Similarly, the Foundry Business, following the implementation of US export restrictions on advanced AI chips to China, also had to adjust the value of its inventory.

Despite these challenges, Samsung maintained its strong position in the market. The DS division's woes were partially offset by the growth in revenue and operating profit for the MX Business. The company indicated that previous delays in datacenter projects had been resolved, leading to increased SSD sales and the clearing of NAND inventory.

Samsung Display, another key division, generated KRW 6.4 trillion in revenue and KRW 0.5 trillion in operating profit. The revenue increase was driven by solid sales of new smartphone displays to major customers and sales of IT and automotive displays. Samsung Display also reported continuous growth in sales of QD-OLED monitor panels, indicating strong demand from the gaming market.

Looking ahead, Samsung will continue to promote AI capabilities in its more affordable A-series smartphones. The company also plans to extend AI functionalities to its tablet and wearable product lines.

The Exynos 2600, expected to be manufactured using Samsung's 2nm GAA node technology, is another exciting development on the horizon.

With these announcements, Samsung is poised to continue its dominance in the tech industry, offering innovative products and maintaining its financial strength.