Strong Second-Quarter Performance Driven by AI Adoption
Samsung Electronics has delivered impressive results in its mobile division for the second quarter, with significant growth fueled by the widespread adoption of AI-enabled smartphones. This trend is evident across both the premium Galaxy S series and the mid-range Galaxy A lineup. The company’s efforts to make artificial intelligence more accessible are showing tangible success, particularly in the United States, where the gap between Samsung and Apple in terms of market share has narrowed considerably.
The operating profit from Samsung’s Mobile eXperience (MX) and Networks businesses increased by 39 percent year-on-year, reaching 3.1 trillion won ($2.4 billion). This performance contributed significantly to the company’s total operating profit of 4.7 trillion won for the quarter. Additionally, revenue from these divisions rose by 6.6 percent, reaching 28.5 trillion won.
Industry experts attribute this financial boost to Samsung’s “AI for all” initiative, which started with the launch of the Galaxy S24—the first on-device AI smartphone globally. In 2025, the company expanded its Galaxy AI integration into more affordable Galaxy A models, accelerating the mass adoption of AI technology. The Galaxy A series now offers devices priced between 400,000 and 700,000 won, making AI features available to a broader audience.
An industry official noted that while AI was previously limited to high-end models, it is now embedded across a wider range of Galaxy A devices, and the sales impact is becoming increasingly apparent.
Despite incorporating more expensive AI-capable chipsets, Samsung maintained stable prices for its new flagship Galaxy S25. This decision is seen as crucial for maintaining user adoption. Interestingly, the company’s average smartphone selling price decreased by $9 during the quarter, indicating that lower-end pricing adjustments were used to stimulate demand further.
Although this pricing strategy slightly affected margins, it did not negatively impact profitability. Instead, it led to a notable increase in sales volumes, helping to offset the effects of reduced average selling prices. Analysts believe this outcome reflects strong consumer interest in AI features, even at mid-range price points.
Globally, Samsung remained the top smartphone shipper in the second quarter, according to Counterpoint Research. The company’s market share increased by 8 percentage points compared to the previous year, outpacing competitors like Oppo and Vivo, whose shipments declined by 8 and 4 points respectively.
The most significant gains were recorded in the U.S., where Samsung’s market share jumped to 31 percent, up 8 percentage points year-on-year. Shipments in the region surged by 38 percent to 8.3 million units, narrowing the gap with Apple from 33 percentage points last year to just 11. Analysts suggest that the delay in Apple’s rollout of new AI features in the upcoming iPhone 16 may have provided an opportunity for Samsung to strengthen its position.
North America remains a strategically important market for Samsung, contributing approximately 15 percent of the company’s global smartphone revenues.
Samsung has indicated that it will continue to expand its AI strategy in the second half of the year. In July, TM Roh, acting head of Samsung’s DX division, announced a goal to equip over 400 million devices with Galaxy AI in 2025—double the target set for the previous year. This suggests that further AI integration into lower-tier devices may be on the horizon.
In Europe, Samsung’s AI strategy is also yielding positive results. The Galaxy A56, launched in Western Europe in March, saw a 12 percent increase in sales within its first 50 days compared to its predecessor, the A55, according to Counterpoint.
Yongseok Kim, a distinguished professor at Gachon University and former Samsung executive, emphasized the importance of continued differentiation as competition intensifies. He noted that Samsung took the lead last year by launching the world’s first AI smartphone and stressed the need for ongoing innovation—not only in technology but also in delivering personalized experiences to users.