Science and technology

Samsung has disappointing financial results for 2024

Samsung

South Korean company Samsung Electronics has apologized to investors for disappointing financial results for the third quarter of 2024, which did not live up to forecasts. About this reported the Bloomberg.

On Tuesday, Oct. 8, the company reported a less-than-expected rise in operating profit to 9,1 trillion won ($6,8 billion) in the third quarter of 2024.

Revenue in the amount of 79 trillion won ($58,6 billion) also fell short of expectations. Samsung will publish a full financial report with all the details on October 31.

Operating profit fell short of expectations, partly due to one-time performance bonus payments, it said. In addition, the company's memory chip business also showed disappointing results, which was reflected in the overall revenue.

Samsung has admitted it's experiencing supply delays for a key type of chip used in Nvidia's AI training processors. As a result, another South Korean company, SK Hynix, seized the leadership in the field of high-speed memory.

In addition to lagging behind SK Hynix in HBM (high-speed memory) production, Samsung also showed little progress compared to Taiwan Semiconductor Manufacturing Co. in the field of outsourced production of specialized chips.

The company warned of "inventory adjustments" as well as growing competition from a Chinese memory chip maker that uses outdated and less advanced technology.

Samsung shares fell 8% on Tuesday, Oct. 1,8, nearing their lowest level since March 2023. The total drop in their value this year exceeded 20%.

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