At first glance, it might seem like Samsung is riding high in the smartphone rankings. But behind the scenes, the mood is quite different. The South Korean tech giant has recently issued a public apology, acknowledging its disappointing performance lately.
Earlier this week, Samsung provided profit guidance for the previous quarter, revealing that while it’s still performing well, it fell short of expectations. According to Ars Technica, the company reported an operating profit of KRW 9.1 trillion for the third quarter, which, although a significant increase from last year, was below its target of KRW 10.3 trillion.
In light of this shortfall, Samsung issued a public apology to both its users and investors. Young Hyun Jun, Head of Device Solutions, stated:
“The leadership team at Samsung Electronics wishes to apologize for not meeting your expectations with our performance.” The company even described the situation as a “crisis facing Samsung” due to its failure to meet anticipated results.
Young Hyun Jun, Head of Device Solutions
While “crisis” may seem like a strong term, it’s worth noting that the last quarter has been relatively quiet for Samsung, especially compared to competitors like Apple and Huawei, who have recently launched the iPhone 16 series and the world’s first tri-folding smartphone, respectively. Historically, this isn’t typically a standout quarter for Samsung, but the year-over-year performance increase is still commendable.
This weak profit guidance comes as Samsung is making some tough decisions, including cutting back on its 147,000 overseas employees. The company has described these layoffs as “routine workforce adjustments” aimed at improving operational efficiency, but they also reflect a growing sense of discontent among workers back home.
