Samsung says US tariffs will have an effect on costs and demand for smartphones and reminiscence chips

Throughout an earnings name, Samsung's chief monetary officer Quickly-cheol Park advised reporters that "ongoing uncertainty surrounding US tariff insurance policies continues to pose a possible threat of demand slowdown." In keeping with Financial Times, Park mentioned that US tariff insurance policies and stronger export controls towards artificial intelligence merchandise are anticipated to have an effect on product demand within the second half of the yr. Along with a downward development on gross sales, the corporate additionally expects tariffs to boost costs for the parts it makes use of on its cellphones, which can have additional influence on its income.

Samsung's name mentioned its outcomes for the primary quarter of 2025, which ended on March 31. The corporate posted KRW 79.14 trillion in income ($55.6 billion), an all-time quarterly excessive principally as a result of robust Galaxy S25 gross sales. It additionally posted KRW 6.7 trillion ($4.7 billion) in revenue, which is barely decrease than the earlier quarter's KRW 6.5 trillion ($4.6 billion).

Regardless of the file income, Samsung's chip enterprise already took successful as a result of harder US export controls to China on chips utilized in {hardware} for synthetic intelligence. The division posted KRW 1.1 trillion ($774 million) in working revenue, down from KRW 2.9 trillion ($2 billion) final quarter. Monetary Instances previously reported that Samsung had a lift in revenue within the first quarter of the yr due to Chinese language clients stockpiling reminiscence chips forward of US tariffs, however the influence of US export restrictions overshadowed the rise in orders. The publication has additionally famous that the tariffs the US can be imposing on semiconductors and client electronics will result in a rise in costs of its smartphones and TVs, that are principally made in Vietnam and Mexico, respectively.

This text initially appeared on Engadget at https://www.engadget.com/big-tech/samsung-says-us-tariffs-will-affect-prices-and-demand-for-smartphones-and-memory-chips-124537214.html?src=rss

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