During a recent earnings call, Samsung’s CFO Soon-cheol Park didn’t mince words when talking to the financial crowd. The gist? US tariff policies and tighter export controls on AI gadgets are about to shake things up for the tech behemoth. Here’s the lowdown from the chat:
- Demand Slowdown: Brace yourselves—thanks to the rollercoaster of tariff uncertainties, the second half of the year might not be as bustling as we’d hope.
- Price Hikes: If you thought your phone was pricey now, just wait. Components are getting a premium tag, which, unsurprisingly, is going to nibble at Samsung’s revenue.
- First Quarter Performance: On a brighter note, Samsung smashed it with a record revenue of KRW 79.14 trillion ($55.6 billion), all thanks to the Galaxy S25 flying off the shelves. But, and there’s always a but, profits took a tiny step back to KRW 6.7 trillion ($4.7 billion).
- Chip Business Woes: Operating profit took a nosedive to KRW 1.1 trillion ($774 million) from last quarter’s KRW 2.9 trillion ($2 billion). The culprit? US export controls putting a damper on sales to China.
Despite the hurdles, Samsung’s not just sitting around. With a killer lineup like the Galaxy S25, they’re keeping the revenue engine humming. But let’s not kid ourselves—the ripple effects of US policies on the global tech supply chain? That’s the elephant in the room everyone’s watching.
