Consensus estimates compiled by securities firms project that the South Korean technology giant will post an operating profit of 4.77 trillion won ($3.26 billion) for the January–March period. That figure represents a 27.8 percent drop from the same period a year earlier and a 26.6 percent decline from the previous quarter.
The anticipated slump underscores ongoing challenges in the company’s semiconductor business.
Several domestic brokerages, including LS Securities, Daol Investment & Securities, and IM Securities, forecast an operating loss of between 369 billion and 410 billion won for Samsung's semiconductor division, citing continued weakness in global IT demand and intensifying price competition from Chinese rivals.
Sales of high-bandwidth memory (HBM), a key growth area, appear to have declined sharply. LS Securities analyst Cha Yong-ho estimates HBM revenue fell 40 percent quarter-over-quarter to 2.8 trillion won. He attributed the drop to a front-loaded surge in Chinese demand during the fourth quarter of 2024, ahead of new U.S. export restrictions on advanced memory products that took effect in January.
Still, some industry watchers suggest the worst may be over. Analysts expect the company’s earnings to bottom out in the first quarter and gradually recover as IT demand rebounds and memory inventories normalize.
“We expect Samsung’s earnings to stabilize in the first quarter and begin improving, supported by an early recovery in memory pricing and increased demand from Chinese customers," said Lee Su-rim, an analyst at DS Investment Securities.
reporter
Candice Kim
candicekim1121@ajupress.com
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