Samsung Electronics has released its financial report for the first quarter of this year. TM Roh, the head of the mobile division (MX), expressed concerns about the potential for the division to face its first-ever annual loss. While it's uncertain how the rest of the year will unfold, Galaxy smartphones have remained profitable for Q1.
The MX and Network Businesses division achieved KRW 38.1 trillion in consolidated revenue and an operating profit of KRW 2.8 trillion during the first quarter. Sales exceeded the figures from the same period last year, which reported KRW 37 trillion in revenue and KRW 4.3 trillion in profit for Q1 2025. Nonetheless, the market poses challenges, and Samsung maintained single-digit profitability due to its strategic product mix focused on premium models and proactive cost optimizations.
Looking ahead to the next three months, Samsung anticipates a revenue decline. In the latter half of 2026, the MX division plans to concentrate on flagship sales and enhancing its presence in the foldable smartphone market (the rumored Galaxy Wide was not explicitly mentioned, implying a strategic focus).
Despite TM Roh's concerns, the financial report predicts higher revenue for the MX division in 2026 compared to last year, although yearly profit forecasts remain unspecified.
Shifting focus to Device Solutions (DS), it's a cause for celebration as the division reported KRW 81.7 trillion in revenue, reaching an all-time high, representing an impressive 86% quarter-over-quarter increase. Operating profit also soared, reaching KRW 53.7 trillion, compared to the KRW 1.1 trillion reported the previous year.
The memory segment within DS achieved a record in quarterly sales, primarily driven by high-value products targeting the AI market. DS has begun marketing HBM4 and SOCAMM2 memory for Nvidia's Vera Rubin, the successor to the Blackwell architecture, with initial products expected later this year.
In the second quarter, the memory division plans to deliver HBM4E memory samples to clients and aims to capture the nascent PCIe Gen6 SSD market, focusing on AI infrastructure designed for KV caching.
The ongoing memory shortage is impacting the entire electronics sector, placing pressure on Samsung's various divisions. Samsung Display Corporation (SDC) generated KRW 6.7 trillion in consolidated revenue, with an operating profit of KRW 0.4 trillion.
Demand for small and medium display products has waned, attributed to seasonal fluctuations (all flagship models launched in Q1 were produced beforehand) and the adverse effects of high memory prices on smartphone sales. However, SDC noted “robust demand” for OLED gaming monitors, as gamers seek alternatives for better visuals.
Samsung System LSI, the division responsible for Exynos chips and ISOCELL camera sensors, reported improved earnings driven by strong chipset sales. In the upcoming quarter, LSI plans to boost sales of chipsets and sensors for mid-range smartphones, while also expanding its customer base for 200MP sensors and securing flagship SoC design wins.
The Foundry business experienced a decline in earnings, once again attributed to seasonal effects. Nevertheless, the development of the 1.4nm process node remains on track, and Samsung aims to attract new customers to its 2nm node. For the second quarter, the Foundry division plans to enhance earnings by increasing the supply of HBM4 dies.
Further details on Samsung's other business segments, such as Harman, Visual Display, and Digital Appliances, can be found in the press release.
While individual divisions face fluctuations, Samsung Electronics as a whole is thriving, boasting a consolidated revenue of KRW 133.9 trillion, marking an all-time high for the quarter and a significant 43% increase from Q4 2025. Operating profit also reached an all-time high of KRW 57.2 trillion.
For context, in Q1 2025, Samsung Electronics reported a revenue of KRW 79.1 trillion and an operating profit of KRW 6.7 trillion.
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