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Samsung Electronics sees over 50% drop in operating profit in Q2

Published: 31 Jul. 2025, 10:12 Updated: 01 Aug. 2025, 14:50

SHIN MIN-HEE
[email protected]

The Samsung Electronics office building in Seocho District, southern Seoul [NEWS1]

Samsung Electronics reported a weaker-than-expected 55.23 percent on-year drop in operating profit for the second quarter this year, the company said in a regulatory filing Thursday.

Operating profit stood at 4.68 trillion won ($3.36 billion) for the April to June period.

Revenue rose 0.67 percent year-on-year to 74.57 trillion won, while net profit declined 48.01 percent to 5.12 trillion won.

The Device Solutions division, which oversees the semiconductor business, logged 27.9 trillion won in sales, an 11 percent on-year increase due to stronger sales of high-value server memory chips and to major foundry clients.

However, the division saw 400 billion won in operating profit, the lowest since the fourth quarter of 2023, when it posted an operating loss of 2 trillion won. The decline is attributed to losses from memory inventory and extra costs in the non-memory business caused by U.S. sanctions on China.

The Device eXperience division, which handles mobile devices and appliances, reported sales of 43.6 trillion won and an operating profit of 3.3 trillion won. Sales fell 16 percent from the first quarter, or the January to March period, and operating profit decreased by 1.4 trillion won, as a result of weaker sales from new smartphones and tougher competition in the television market.

BY SHIN MIN-HEE [[email protected]]