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Samsung Faces Serious Profitability Challenges from Weak Sales of Galaxy S25 Series and Other Factors

Posted on 7 July 2025

Samsung is currently facing significant challenges with its profitability, primarily attributed to disappointing sales of the Galaxy S25 series. After reporting a strong financial performance in the first quarter of 2025, the company now anticipates considerably lower results for the second quarter, which is expected to span April to June. Multiple factors have been contributing to this anticipated downturn, as suggested by various Korean media sources. A notable influence is the overall economic slowdown affecting numerous technology segments, including smartphones.

Despite an initial successful launch and solid revenue reports in Q1, the Galaxy S25 family appears to be struggling to sustain favorable sales momentum. While specific sales figures are not available, projections indicate that Samsung might report profits in the range of low to mid 5 trillion won for the second quarter of the year, roughly translating to about 3.67 billion US dollars. Although this would represent a substantial profit for many tech companies worldwide, it falls alarmingly short of Samsung’s initial forecasts, which expected nearly 7 trillion won. Moreover, this figure suggests a significant drop from previous earnings, particularly when considering that the company earned over 10 trillion won during the same period in 2024.

In addition to reduced smartphone sales, the company may also face challenges from a prolonged slump in the semiconductor market, rising logistics costs, and external economic pressures, such as tariffs. These factors collectively indicate that the decline in profitability cannot solely be attributed to the sluggish performance of the Galaxy S25 series. In light of these challenges, there are hopes that Samsung will implement more aggressive marketing strategies to rejuvenate interest in the S25 lineup in critical markets like the United States.

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