Samsung has achieved notable short-term success amid actions taken by customers who are stockpiling its memory and smartphones in anticipation of potential tariff hikes. Recent reports indicate that Samsung’s operating profit soared to approximately 6.6 trillion won (around $4.47 billion) for the first quarter of the year, surpassing previous estimates made by the London Stock Exchange Group by 1.5 trillion won ($1 billion).

While this profit shows a slight decrease compared to the same period last year, it exceeds results from the previous quarter.

According to Greg Roh, head of research at Hyundai Motor Securities, the growing demand for Samsung’s products stems from customers’ desire to secure inventories ahead of likely U.S. tariffs. Roh noted, “Strong demand from customers looking to secure inventory ahead of potential U.S. tariffs helped boost Samsung’s memory chip shipments.”

The economic instability surrounding tariffs could lead to shifts in manufacturing strategies employed by some of Samsung’s clients. Many businesses currently operate under a Just-in-Time model, acquiring stock only as necessary, which minimizes waste but may now lead to increased purchases to mitigate future price spikes.

Despite the optimistic reports concerning profit, analysts suggest that shipments might decline in the upcoming second quarter. Tariffs imposed on multiple countries, including a blanket 10% tariff that has been rapidly increasing, are likely to impact consumer prices adversely, leading to diminished demand for products. The ultimate outcome remains uncertain as the situation continues to evolve with ongoing tariff discussions.