Sales of memory chips, including NAND and DRAM, have had a negative affect on Samsung's margins. There was some good news for Samsung, though - a profitability gain on DRAM because of price increases the company made on DDR2 has been experienced.
Compared to the first quarter of 2005, sales in its semiconductor division fell by 15 per cent - breaking that out, memory sales fell by 16 per cent quarter on quarter.
The position wasn't bright for LCDs either - sales fell by 11 per cent compared to the same quarter last year. Phones fell too, but by only eight per cent compared to the same quarter last year.