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 informed reporters that "ongoing uncertainty surrounding US tariff insurance policies continues to pose a possible danger of demand slowdown." Based on Financial Times, Park mentioned that US tariff insurance policies and stronger export controls in opposition to artificial intelligence merchandise are anticipated to have an effect on product demand within the second half of the 12 months. Along with a downward pattern on gross sales, the corporate additionally expects tariffs to lift costs for the parts it makes use of on its cell phones, which can have additional impression 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 on account of sturdy 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 on account 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 12 months because of Chinese language clients stockpiling reminiscence chips forward of US tariffs, however the impression of US export restrictions overshadowed the rise in orders. The publication has additionally famous that the tariffs the US will probably be imposing on semiconductors and shopper 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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