7 hours Ago By Korea Bizwire
Samsung Electronics announced on January 8 that visitors at its CES 2025 exhibition booth at the Las Vegas Convention Center are experiencing a wide range of products and solutions. Visitors are seen exploring Harman’s automotive electronics display, a subsidiary of Samsung Electronics. (Image provided by Samsung) SEOUL, May 5 (Korea Bizwire) — Samsung Electronics and LG Electronics are seeing robust growth in their automotive electronics divisions, with first-quarter earnings from these units matching or even surpassing those from their flagship home appliance and television businesses—a sign of accelerating transformation in both firms’ business portfolios.
According to industry data released on May 4, Samsung’s Harman, the company’s U.S.-based automotive and audio subsidiary, posted 3.
4 trillion won ($2.35 billion) in revenue and 300 billion won ($207 million) in operating profit in Q1 2025—on par with the operating profit from Samsung’s Visual Display and Digital Appliances (VD/DA) division, which oversees its TV and home appliance operations. Harman, acquired by Samsung in 2017 for $8 billion, has grown into a key earnings pillar.
Known globally for its dominance in digital cockpit systems and in-car audio, Harman supplies premium sound systems under brands such as JBL, Harman Kardon, Bowers & Wilkins, and Bang & Olufsen to leading automakers worldwide. While Harman posted only 60 billion won in operating profit the year it was acquired, it delivered 1.17 trillion won in 2023 and further expanded to 1.
3 trillion won last year. Market analysts forecast Harman could reach 1.5 trillion won in operating profit by the end of 2025—potentially overtaking the VD/DA division on an annual basis for the first time.
“Harman maintained growth this quarter through improved product mix,” Samsung noted in its earnings release, adding that it expects steady profitability to continue in the second half of the year through expanded automotive revenue. LG Electronics announced on January 10 that it has been recognized for its advanced future mobility technologies by winning an award at the ‘2025 SDV Innovator Awards,’ organized by global automotive media outlet MotorTrend. The photo shows Eun Seok-hyun, Executive Vice President and Head of LG’s Vehicle Solutions (VS) Division, who received the award in the ‘Leader’ category.
(Image provided by LG) LG Electronics is also seeing record momentum in its automotive division. The Vehicle Solutions (VS) unit posted 2.84 trillion won ($1.
96 billion) in Q1 2025 revenue and 125.1 billion won ($86 million) in operating profit—both quarterly records. VS accounted for nearly 10% of LG’s total operating profit in the quarter, up from just 3.
9% a year earlier. The performance far outpaced LG’s MS division, which oversees its TV and PC business and recorded a modest 4.9 billion won in Q1 profit amid intensified competition and higher marketing costs.
LG attributed the VS division’s growth to a rising share of premium infotainment system sales. As vehicles become increasingly software-driven, demand has surged for infotainment systems that integrate information and entertainment—a trend LG is capitalizing on. LG’s vehicle components portfolio centers on three pillars: infotainment (VS), EV powertrains (via LG Magna), and automotive lighting (ZKW).
Despite global uncertainties, including tariffs and softening EV demand in the U.S., the company said it will focus on product mix improvements and operational efficiencies to sustain earnings momentum.
“Despite a slowdown in U.S. vehicle demand and tariff challenges, we expect full-year VS revenue to exceed last year’s level, with profitability improving through internal operational efficiencies,” said Kim Joo-yong, executive director of VS at LG Electronics, during the April 24 earnings call.
The surging performance of both Samsung and LG’s automotive businesses underscores a broader pivot toward next-generation mobility solutions as the traditional electronics market matures. Kevin Lee ([email protected]).
