Amid Samsung Electronics' sluggish first-quarter performance, the MX and Network divisions recorded strong results thanks to the flagship smartphone 'Galaxy S23' series launched in February this year.
On the 27th, Samsung Electronics announced that it posted first-quarter sales of 63.7454 trillion KRW and an operating profit of 640.2 billion KRW, down 18.1% and 95.5% respectively from the same period last year. In the first quarter of this year, the MX and Network divisions achieved sales of 31.82 trillion KRW and operating profit of 3.94 trillion KRW. While sales decreased by 1.7% year-on-year, operating profit increased by 3.1%.
Samsung Electronics stated, "Despite the smartphone market contraction, the MX division saw increased sales compared to the previous quarter and a recovery of double-digit profitability due to strong sales of the Galaxy S23 series." The Galaxy S23 series has shown high popularity, with sales increasing 1.5 times compared to its predecessor in Europe, 1.4 times in India, and 1.5 times in the Middle East. In South Korea, sales surpassed one million units earlier this month.
Operational efficiency improvements in processes contributed significantly to earnings improvements across the ▲flagship ▲A series ▲tablet categories.
Network sales declined mainly in key overseas markets such as North America and South Asia.
In the second quarter, the MX division plans to expand sales centered on flagship and Galaxy A series models through regional model operation optimization, upselling strategies, and various consumer sales programs. The Network division will continue to strengthen its business foundation focusing on domestic and North American markets while responding to new business opportunities.
In the second half of the year, Samsung will launch the foldable smartphones Galaxy Z Fold and Flip 5. Tablet and wearable product sales will be strengthened through joint unpacking events. Samsung Electronics said, "MX plans to further solidify its market leadership by introducing new foldable phones with more differentiated and complete experiences. Additionally, efforts to expand overall smartphone market share will be intensified through steady sales of the Galaxy S23 series and region- and customer-tailored sales programs for the A series." It added, "The Network division will respond promptly to key overseas businesses and pursue sales growth through new orders while continuing to strengthen leadership in 5G core chips and vRAN (virtualized radio access network) technology."
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