Samsung expects a sharp drop in demand, caused by tariff increases and export restrictions imposed by Donald Trump. Prices for smartphones, TVs, and other tech products are likely to increase.
Samsung has released its financial results for the first quarter of 2025. As is customary, a conference call was organized to present the company's performance to investors and the specialized press. We also learned that Samsung's first tri-fold smartphone should arrive soon.
During this call, Soon-cheol Park, the group's CFO, also commented on the economic outlook in a world marked by Donald Trump's customs policy. And it is not the most optimistic. “The ongoing uncertainty surrounding US tariffs continues to pose a risk of slowing demand”, the executive explained, in comments reported by the Financial Times. He is clearly preparing investors to expect a decline in activity in the coming months.
The Trump effect will be felt on smartphone prices
Samsung anticipates a rise in come from the prices of memory chips, which are found in almost all electronic devices. Several other components used for smartphones and televisions are also expected to see their prices soar, which will inevitably be reflected in the final price of the products. The decisions of the Trump administration will not only affect the United States: the market will be disrupted worldwide.
The South Korean manufacturer has limited The company is expected to be scrapped in the first quarter of 2025, thanks in particular to the massive stockpiling of memory chips by its Chinese customers before the implementation of customs barriers, as well as the very good sales of the Galaxy S25. Revenue is a record, reaching 79.14 trillion won (48.85 billion euros). Net profit amounts to 6.7 trillion won (4.11 billion euros), a slight increase of 1.2%.
But the restrictions on the export of AI chips to China established by the United States have caused it harm and prevented it from doing even better. The semiconductor division saw its revenues collapse, reporting 1.1 trillion won (680 million euros) in profit at the start of the year, compared to 2.9 trillion won (1.79 billion euros) the previous quarter.
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