Samsung Electronics has announced its highest-ever first-quarter sales forecast, signaling a potentially robust start to the year despite ongoing global economic uncertainties. The South Korean tech giant, a flagship subsidiary of the Samsung Group, anticipates its operating profits for the January-March period to reach 6.6 trillion won ($4.5 billion). This figure represents a slight decrease of 0.15 percent compared to the same period last year but marks an almost two percent increase from the previous quarter.

The projected operating profit significantly surpasses market expectations, exceeding the average estimate by approximately 34 percent, according to Yonhap news agency. Sales are expected to climb to 79 trillion won, a near 10 percent surge from the previous year. This impressive sales figure marks the highest first-quarter revenue in the company's history and the second-highest quarterly revenue overall.

While Samsung has not yet disclosed its net income or detailed earnings for its various business divisions, analysts attribute the strong performance to the remarkable success of the new Galaxy S25 series phone. Released in February, the Galaxy S25 series achieved a milestone by becoming the fastest Galaxy device to reach one million units sold, accomplishing this feat within just 21 days.

The positive forecast led to a surge in Samsung's shares, which rose more than two percent in Seoul on Tuesday. However, the announcement arrives amid broader market concerns, following a significant stock market downturn in Asia and Europe triggered by China's retaliatory measures against steep US tariffs. These tariffs pose a potential challenge to Samsung, as a substantial portion of its smartphone production occurs in Vietnam, which now faces a 46 percent duty from the US.

Bloomberg Intelligence analysts suggest that Samsung's better-than-expected first-quarter operating profit indicates the company's ability to navigate a challenging business environment through popular product offerings, such as Galaxy smartphones, coupled with effective cost control measures. However, they caution that the pace of profit growth may decelerate in the second quarter due to the US import tariffs on products manufactured in Vietnam. On a more positive note, analysts anticipate a recovery in memory chip prices, which could provide a boost to Samsung's overall performance.

When contacted by AFP, Samsung declined to comment on the potential impact of the tariffs.