Samsung Electronics has announced its Q3 2024 earnings, revealing results slightly above its own expectations but with notable challenges in its semiconductor unit. The company reported a revenue of 79.1 trillion won, narrowly surpassing its guidance of 79 trillion won. Operating profit came in at 9.18 trillion won, just above the anticipated 9.1 trillion won.
Despite these positive figures, the semiconductor unit faced a significant setback. Operating profit for this segment dropped by 40% from the previous quarter to 3.86 trillion won (approximately $2.8 billion). This decline was attributed to inventory adjustments that negatively impacted mobile demand and an increased supply of legacy products in China.
While demand for advanced chips was driven by artificial intelligence, mobile and PC sales underperformed. Samsung anticipates a delayed rebound in these areas but expects growth in advanced chipsets to continue, fueled by ongoing AI investments. Server demand is also projected to remain robust due to strong tech company investments.
Shares of Samsung Electronics have fallen 24.71% this year on the South Korean stock exchange. Despite the challenges, Samsung remains optimistic about future growth driven by technological advancements.
The company’s Vice Chairman, Jun Young-hyun, issued an apology following the earlier guidance release, acknowledging the lower than expected figures compared to LSEG’s estimate of 11.456 trillion won in operating profit.
Samsung continues to lead as the top manufacturer of memory chips for devices like laptops and servers and ranks as the second-largest player in the global smartphone market.
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