Samsung's Profits Leap Eightfold, But Not from Mobile Phone Sales

Samsung is reaping significant gains from the sharp surge in demand for AI chips. The company’s profits are estimated to increase up to eightfold compared to the previous year.

In its initial earnings projection, Samsung estimates profits for January to March at 57.2 trillion won (Rp 657.1 trillion). Meanwhile, last year it was only 6.69 trillion won (Rp 76.8 trillion).

The company’s consolidated revenue is also expected to rise. It is projected to reach 133 trillion won (Rp 1.528 trillion), a jump of nearly 70%.

“Samsung Electronics’ first-quarter revenue and operating profit reach a scale that rivals other major global technology companies,” said Counterpoint Research analyst MS Hwang, quoted from CNBC International on Thursday (9/4/2026).

This quarter’s profit estimate subsequently caused Samsung Electronics shares to rise by up to 4.8% on Tuesday (7/4/2026).

Demand for high-speed memory chips has increased due to rapid AI development. This has led to shortages of chips across the memory market, ultimately driving up mobile phone prices as well.

In addition to producing mobile phones and electronic devices, Samsung is one of only three memory manufacturing companies.

Hwang also stated that memory commodity prices are projected to continue rising by more than 50% in the second quarter. The shortage issue is unlikely to ease in the near term.

Although benefiting considerably from AI chips, Samsung still faces several challenges due to conflicts in the Middle East. This is causing disruptions in the delivery of essential materials for semiconductor manufacturing, particularly helium.

Such issues could heighten manufacturing disruption risks. The impact will be felt by companies like Samsung and SK Hynix.

“If the Middle East conflict ends quickly, it will not significantly affect profits. However, if it continues for several months or more, it will lead to more serious consequences,” he explained.