Samsung Electronics posted its earnings estimate for Q3 2024 and revealed revenue will probably be 10% lower than beforehand anticipated. The main 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 cell 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 models in KRW / USD) | Q3 2024 Earnings Steerage |
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 enhancing 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 know-how has pressured 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 System Options Division, mentioned, “These are testing times for the company.” He promised to show the problem into a possibility and deal with enhancing long-term technological competitiveness.
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