Samsung Q3 2024 Earnings Estimate
Samsung has revealed its estimated earnings for Q3 2024, highlighting significant challenges despite the booming AI chip market. The company reported sales of 79 trillion KRW and an operating profit of 9.1 trillion KRW. However, Samsung’s leadership issued a rare apology for missing opportunities for growth.
Key Figures:
- Sales: 79 trillion KRW (up 6.66% QoQ, up 17.21% YoY)
- Operating Profit: 9.1 trillion KRW (down 12.84% QoQ, up 274.49% YoY)
While Samsung’s overall sales grew, the operating profit dropped quarter over quarter. Its flagship and foldable phones underperformed, and the semiconductor division continues to struggle, facing stiff competition from companies like TSMC and SK Hynix.
With yield issues in the semiconductor business and delayed entry into the AI memory market, Samsung is considering workforce reductions and possible restructuring, especially in its DS Division, to regain growth momentum.
Samsung apologizes
Young Hyun Jun, Vice Chairman, Device Solutions Division, Samsung Electronics said that the company will review its organizational culture and processes and rather than relying on short-term solutions, it will focus on reinforcing long-term competitiveness.
“We have caused concerns about our technical competitiveness, with some talking about the crisis facing Samsung,” Jun said. “As business leaders, we take full responsibility for this.”
“These are testing times,” he said, pledging to turn the challenge into an opportunity and focus on enhancing long-term technological competitiveness.
Samsung said in a statement that the earnings declined in its memory chip business as Chinese chip rivals increased supplies of “legacy products” and some mobile customers adjusted inventories, offsetting solid demand for high bandwidth memory (HBM) and other chips used in servers, Reuters reported.
