Customers shop at a Samsung mobile phone store in a shopping mall in New Delhi.
Reuters | Anindito Mukherjee
Samsung Electronics on Thursday reported third-quarter sales and operating profits that were slightly higher than its own expectations, but profits from its chip business fell sharply from the previous quarter.
The semiconductor unit reported third-quarter operating profit of 3.86 trillion won (approximately $2.8 billion), down 40% from the previous quarter.
Samsung is a top maker of memory chips used in devices such as laptops and servers, and is the second-largest player in the global smartphone market.
While artificial intelligence is driving demand for its advanced chips from its foundry unit, Samsung said mobile and PC demand underperformed. The South Korean tech giant said that while interest in more advanced chips will continue to grow, driven by investments in artificial intelligence, a rebound in mobile and PC demand will be delayed.
Here’s how Samsung’s results compare to the guidance it issued earlier this month:
- income: 79.1 trillion won vs 79 trillion won
- operating profit: 9.18 trillion won vs 9.1 trillion won
These guidance figures are significantly lower than LSEG’s expected operating profit of 11.456 trillion won. Samsung’s vice chairman and new head of the company’s device solutions division issued a rare apology after the guidance was released.
Samsung expects demand for these advanced chipsets to continue driving growth next year. The company said it expects server demand to remain strong as technology companies continue to make “strong investments.”
Since the beginning of this year, the share price of Samsung Electronics, which is listed on the Korean Stock Exchange, has fallen by 24.71%.
This is breaking news. Please check back for updates.
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