Samsung earnings guidance reveals increased sales but unimpressive profit in Q3 2024 | Infinium-tech
Samsung Electronics posted its earnings forecast for the third quarter of 2024 and reported that profit will be 10% lower than previously expected. The main reason is an unexpected delay in the AI chip business from an unnamed major customer, but the company did not elaborate on this.
Samsung revealed that earnings in the mobile division improved from the previous quarter, which is the period when the Galaxy Z Fold6 and Galaxy Z Flip6 foldables were launched. As Apple launched its iPhones, the display division also saw growth, the majority of which are with Samsung panels.
| (All units in KRW/USD) | Q3 2024 earnings guidance |
Q2 2024 | QoQ change | Q3 2023 | change from year to year |
| 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% |
Reuters quoted several analysts as saying that they too do not see improvement in earnings in this quarter. Samsung is still lagging behind SK Hynix, as its fellow South Korean competitor has been boosting sales in HBM chips (high-bandwidth memory), the main chips used for AI processing.
Samsung’s late response to new trends in technology has forced the company to rely on traditional, low-margin chips. Due to slow demand, competition from China is already slowly infiltrating this market.
The Galaxy Z Flip6 (left) next to the Z Fold6
“This is a testing time for the company,” said Young Hyun Joon, vice chairman of Samsung’s device solutions division. He promised to turn the challenge into an opportunity and focus on enhancing long-term technological competitiveness.
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