Samsung Electronics has announced its Q3 2024 earnings estimate, revealing profits will be around 10% lower than expected due to an unforeseen delay in the AI chip business from a major, unnamed customer.
On a positive note, Samsung reported improved earnings in its mobile division, driven by the launch of the Galaxy Z Fold6 and Galaxy Z Flip6. The display division also saw growth, aided by Apple’s new iPhones that utilize Samsung panels.
| (all units in KRW / USD) | Q3 2024 Earnings Guidance | Q2 2024 | QoQ Change | Q3 2023 | YoY Change |
| Sales | 79 trillion / 58.6 billion | 74.07 trillion / 55 billion | 6.7% | 67.4 trillion / 50 billion | 17.2% |
| Operating Profit | 9.1 trillion / 6.7 billion | 10.44 trillion / 7.75 billion | -12.8% | 2.43 trillion / 1.8 billion | 274.4% |
According to Reuters, several analysts are predicting that Samsung’s earnings won’t see much improvement this quarter. The company continues to lag behind its South Korean rival, SK Hynix, which is successfully boosting sales of high-bandwidth memory (HBM) chips—critical components for AI processing.
Samsung’s delayed reaction to the latest trends in technology has left it reliant on traditional chips, which typically yield lower profit margins. This sector is also facing growing competition from Chinese manufacturers, particularly as demand begins to slow. As a result, Samsung’s position in the market remains precarious, underscoring the challenges the company faces in adapting to a rapidly evolving landscape.
Young Hyun Jun, Vice Chairman of Samsung’s Device Solutions Division, acknowledged, “These are testing times for the company.” He expressed confidence in turning these challenges into opportunities, emphasizing a commitment to strengthening Samsung’s long-term technological competitiveness.
