Samsung Electronics posted its earnings estimate for Q3 2024 and revealed revenue might be 10% lower than beforehand anticipated. The foremost cause is an sudden delay within the AI chip enterprise from an unnamed main buyer, however the firm did not elaborate additional.
Samsung revealed that earnings within the cellular division improved from the previous quarter, which is the interval that noticed the launch of Galaxy Z Fold6 and Galaxy Z Flip6 foldables. The show division additionally noticed a rise as Apple launched its iPhones, most of that are with Samsung panels.
(all items in KRW / USD) | Q3 2024 Earnings Steering |
Q2 2024 | QoQ Change | Q3 2023 | YoY Change |
Gross sales | 79 trillion / 58.6 billion |
74.07 trillion / 55 billion |
6.7% | 67.4 trillion / 50 billion |
17.2% |
Working Revenue | 9.1 trillion / 6.7 billion |
10.44 trillion / 7.75 billion |
-12.8% | 2.43 trillion / 1.8 billion |
274.4% |
Reuters quoted a number of analysts who additionally don’t see earnings bettering on this quarter. Samsung nonetheless is behind SK Hynix, as its fellow South Korean competitor is rising gross sales in HBM chips (high-bandwidth reminiscence), the principle chips used for AI processing.
Samsung’s late response to the brand new fad in expertise has compelled the corporate to depend on conventional, lower-margin chips. This market is already slowly being infiltrated by competitors from China as demand slows down.
Galaxy Z Flip6 (left) subsequent to Z Fold6
Younger Hyun Jun, Vice Chairman of Samsung’s Machine Options Division, stated, “These are testing times for the company.” He promised to show the problem into a possibility and give attention to enhancing long-term technological competitiveness.
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