Samsung Electronics said that although third-quarter revenue increased slightly to 79.1 trillion won (1.4 million billion VND), reaching 9.18 trillion won (163 trillion VND) in profit, the chip division only recorded 3.86 trillion won (68 trillion VND) in profit, down 40% compared to the previous quarter.
High inventories and a supply of old products from China have caused Samsung’s mobile and PC markets to decline. Despite strong demand for memory chips in AI and server applications, Samsung has struggled to recover profits from this segment.
The slowdown in the PC and mobile device markets has continued to weigh on the division's profits, with Samsung Vice President Jun Young-hyun, who heads the device solutions division, publicly apologizing for the poor performance, the report said.
Samsung believes that demand for advanced chips will remain strong thanks to strong investment in AI, especially in servers and data centers, although the forecast for the PC and mobile markets remains bleak.
The third-quarter financial results also showed that Samsung beat initial expectations for profit and revenue, but fell significantly short of LSEG analysts' expectations of 11.456 trillion won in net profit. Although new products helped Samsung maintain some market share, the market has not recovered as expected.
In addition, Samsung's shares on the Korean exchange have fallen 24.71% this year, showing the difficulty in maintaining growth and compensating for declines in other segments. Samsung expects demand in the AI field to be an important growth driver next year and help improve its financial situation.
