With only a 0.2% fall in Q1, Samsung believes that this small decrease was mainly driven by the recently imposed U.S. tariffs, which determined a higher demand for smartphones and memory chips.
According to some analysts, the recorded sales have increased better than the company expected, especially for memory chips that are used for smartphones, along with artificial intelligence chips. Also, the company thinks that various consumers purchased a bigger stock from Samsung due to the fact that a potential Trump Tariff plan might come into effect soon.
In the initial estimates, the Chinese company valued its Samsung profit margin for all its January-March operations at $4.49 billion, much higher compared with the LSEG estimates.
It should be mentioned that in the same period as last year, Samsung's profit was similar to this year’s, while the previous quarter recorded a lower Samsung profit margin.
"While general memory prices dipped, strong demand from customers looking to secure inventory ahead of potential U.S. tariffs helped boost Samsung’s memory chip shipments, supporting overall performance,", the head of research at Hyundai Motor Securities, Greg Roh stated.
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But why does the Trump tariff plan raise concerns worldwide?
Donald Trump, the current U.S. President, announced last week that is planning to implement a series of reciprocal tariffs on various U.S. trading partners which also includes China. But even though the semiconductors were until now excused from paying taxes, Donald Trump stated Thursday that new tariffs on chips are coming soon. Greg Roh also stated that the recently launched Galaxy S25 smartphone which features a lot of artificial intelligence capabilities has probably helped to increase sales, especially because customers and companies have concerns about the Trump tariff plan.
Because buyers seek now to stock up with Samsung devices, in the second quarter Samsung Electronics shipments will probably record a sudden decline.
Stay tuned for more Samsung news!
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