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Investing.com-- Samsung Electronics (KS:005930) on Wednesday reported a slight rise in first-quarter operating profit, driven by robust demand for memory chips and its flagship Galaxy smartphones, though weaker display earnings capped gains.
The South Korean tech giant posted an operating profit of 6.7 trillion won ($4.7 billion) for the January-March quarter, up from 6.6 trillion won ($4.6 billion) a year earlier.
Revenue climbed 10% to 79.1 trillion won, buoyed by strong sales in its Device Solutions (DS) and Mobile eXperience (MX) divisions.
The MX division, which includes smartphones, posted a 43% quarterly sales jump to 37 trillion won, fueled by the launch of the AI-powered Galaxy S25 series.
However, earnings for the memory chip business fell sharply to 1.1 trillion won from 1.9 trillion won a year ago, hurt by a decline in high-bandwidth memory (HBM) sales and export controls on HBM used in AI chips.
Samsung Display Corp (SDC) also saw profit drop due to seasonal declines in small and medium-sized panels.
For its Digital Appliances (DA) division, the company aims to increase sales of AI-driven, high-value products amid "ongoing uncertainties such as tariffs," the company said in earnings release.