Samsung Expects Smartphone Sales Rebound

Samsung's mobile division forecast smartphone shipments to increase in Q1 due to rising demand for its new AI-packed Galaxy S25 flagship series. The forecast follows a weak final quarter of 2024.

Revenue from the vendor’s Mobile eXperience (MX) and Networks unit increased 3.1% in Q4 to KRW25.8 trillion ($17.6 billion) year-on-year, while operating profit declined 22.2% to KRW2.1 trillion. Sales from its network unit fell 20% to KR800 billion. Smartphone shipments dipped 1.9% to 52 million units, while tablet shipments were flat at 7 million. Smartphone ASP inched up marginally to $260.

On its earnings call, Samsung MX VP Daniel Araujo noted in the current quarter Samsung expects an increase in smartphone shipments and ASP due to the launch of new flagship models, while tablet shipments should remain steady. He noted the risk of rising costs of key components is expected to persist, with the company continuing to improve operational efficiencies to secure a double-digit operating margin.

For the full year, the smartphone market is forecast to increase slightly, driven by increased expectations for AI products, Araujo added. The mass market segment is predicted to grow given the rollout of AI functionality to mid-range products, along with overall improvements in hardware performance. The growth rate of the premium segment is expected to slow slightly compared with 2024, he said.

On a group level, net profit grew 23.8% to KRW7.8 trillion, while revenue rose 11.8% to KRW75.8 trillion. Its chip division booked a 39% growth in sales to KRW30.1 trillion. CFO Park Hark-kyu noted the management team is acutely aware of the challenges the company faces and is fully committed to overcoming the current difficulties, referring to the company’s struggle to gain traction in the HBM segment.