SEOUL — South Korea's Samsung Electronics said on Wednesday it expected fourth-quarter (Q4) profits to be sharply down compared with the previous quarter, falling short of expectations as the company struggled to meet robust demand for chips used in artificial intelligence servers.The firm is the flagship subsidiary of South Korean giant Samsung Group, by far the largest of the family-controlled conglomerates that dominate business in Asia's fourth-largest economy.
However, the world's largest memory-chipmaker issued a rare apology in October acknowledging it was facing a 'crisis' and that questions had arisen about its 'fundamental technological competitiveness and the future of the company.'It said in a regulatory filing that its October-December operating profits were expected to be 6.5 trillion won ($4.5 billion), up 130.5 percent from a year earlier.That was down nearly 30 percent from the firm's operating profit of 9.18 trillion won in the third quarter.Sales were seen increasing 10.7 percent on-year to approximately 75 trillion won, also down 5.2 percent compared with the previous quarter.'In light of the preliminary Q4 2024 results significantly falling short of market expectations, we aim to mitigate confusion among the market and investors until the final results are announced,' Samsung's management said in an explanation page.It noted that Samsung's Device Solutions division, which is in charge of memory and foundry business units, among others, 'reported declines in sales and profits due to worsening market conditions, particularly for IT-related products.''Despite achieving record-high quarterly revenue in Q4, driven by strong sales of high-capacity products, weak demand for conventional PC and mobile products weighed on overall performance,' it said.Non-Memory Business performance also declined due to 'weak demand from key applications' and 'increased R&D spending
SAMSUNG ELECTRONICS PROFITS CHIPS ARTIFICIAL INTELLIGENCE DEMAND
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
SSS Officials' Million-Peso Salaries Contrast Sharply with Poverty-Level PensionsNeri Colmenares, Chairman of Bayan Muna and former congressman, criticizes the huge pay gap between Social Security System (SSS) officials and its members. He highlights the million-peso salaries of top officials compared to the meager pensions received by retirees.
Read more »
Human trafficking rises sharply after dropping during pandemic, UN says'Criminals are increasingly trafficking people into forced labor, including to coerce them into running sophisticated online scams and cyberfraud, while women and girls face the risk of sexual exploitation and gender-based violence,' the UN report...
Read more »
China's Industrial Profits Fall at Slower Pace, But Still Headed for Worst Decline in DecadesDespite a slowdown in the rate of decline, China's industrial profits are projected to suffer their steepest drop in over two decades due to persistent weak domestic demand.
Read more »
Peso Rises, Stocks Fall as Investors Take ProfitsThe Philippine peso strengthened on Tuesday, but the stock market retreated as investors booked gains following a three-day rally.
Read more »
New Nike CEO vows turnaroundNEW YORK — Nike reported lower profits on another drop in revenue on Thursday, with new CEO Elliott Hill vowing to get the slumping sports giant back on track.
Read more »
Leaders’ ratings drop—surveyA survey conducted by Pasig City-based political consultancy PUBLiCUS Asia, Inc. showed a “significant decline in the approval and trust ratings of key
Read more »