Infomax: Samsung Electronics' operating profit is expected to drop 27.8% year-on-year in Q1 2025

Recently, according to a survey by South Korea's Infomax, analysts predict that Samsung Electronics' operating profit in the first quarter of 2025 will still be not optimistic, facing three consecutive quarters of decline.

Analysts predict that Samsung Electronics' operating profit in the first quarter of 2025 is expected to be 4.7 trillion won (about US$3.2 billion), a year-on-year decrease of 27.8% and a month-on-month decrease of 26.6%.

The report said that the downward trend was mainly attributed to the full production capacity of Chinese DRAM factories, which led to a drop in the price of traditional DRAM. Samsung, as the main supplier of traditional DRAM, was severely impacted.

In the second quarter of 2024, Samsung's operating profit was 10.4 trillion won, but then declined quarter by quarter, falling to 9.2 trillion won in the third quarter and further to 6.5 trillion won in the fourth quarter.

However, according to the latest survey by TrendForce, due to the successful inventory clearance of downstream customers, the decline in traditional DRAM quotations is expected to narrow to 0% to 5% in the second quarter of 2025.

If HBM is included in the calculation, the average price is expected to increase by 3% to 8% quarter-on-quarter thanks to the gradual increase in HBM3e 12hi sales.

Samsung Electronics is scheduled to announce preliminary financial results for the first quarter of 2025 in early April.