*

Samsung sees Q1 profit at 6.6 trillion won vs 5.1 trillion

LSEG

SmartEstimate

*

Looming US tariffs drive chip sales, smartphone shipments,

analysts say

*

Second quarter phone shipments likely to fall, analysts

say

(Adds results date in paragraph 5, analyst comment, background)

By Heekyong Yang, Joyce Lee and Hyunjoo Jin

SEOUL, April 8 (Reuters) - Samsung Electronics ( SSNLF )

on Tuesday flagged a much smaller-than-feared 0.2%

fall in first-quarter operating profit, boosted by solid memory

chip sales and strong smartphone demand, partly driven by

customers concerned about U.S. tariffs.

Sales of conventional memory chips used in consumer devices

such as smartphones and AI chips likely came in better than

expected, with some customers stockpiling chips ahead of

potential U.S. tariffs on semiconductors, analysts said.

The world's largest memory chipmaker estimated an operating

profit of 6.6 trillion won for the January-March period, well

above a 5.1 trillion won LSEG SmartEstimate.

That would compare with 6.61 trillion won in the same period

a year earlier and 6.49 trillion won in the preceding quarter.

"While general memory prices dipped, strong demand from

customers looking to secure inventory ahead of potential U.S.

tariffs helped boost Samsung's memory chip shipments, supporting

overall performance," said Greg Roh, head of research at Hyundai

Motor Securities.

Samsung, reshuffling its top ranks following the sudden

death of co-CEO Han Jong-Hee last month, is expected to release

detailed results including a breakdown of earnings for each of

its businesses on April 30.

Last week, U.S. President Donald Trump announced a slew of

reciprocal tariffs on trading partners, including China. While

semiconductors were exempted from reciprocal tariffs, Trump on

Thursday reiterated plans to levy tariffs on chips very soon.

Roh said Samsung's AI features in the Galaxy S25 smartphone

models helped drive strong sales, adding that preemptive

smartphone shipments by North American customers ahead of the

tariffs likely contributed to first-quarter results.

Analysts noted that Samsung's smartphone shipments rose in

the first quarter, driven in part by preemptive shipments in

certain channels, which they estimate were made in anticipation

of the U.S. tariffs, and as a result, shipments are likely to

decline in the second quarter.

Samsung Electronics ( SSNLF ) in January unveiled its newest Galaxy

S25 smartphones, hoping their upgraded AI features could

reinvigorate sales and fend off Apple ( AAPL ) and Chinese

rivals.

South Korea's SK Hynix ( HXSCF ) the world's

second-largest memory chipmaker, said last month that some

customers have brought forward orders in preparation for new

U.S. tariffs, but was wary of counting on a sustained demand

recovery.

Micron Technology ( MU ) in March forecast third-quarter

revenue above Wall Street estimates, signalling strong demand

for its high-bandwidth memory (HBM) chips used in AI models.