Samsung’s Fourth-Quarter Profit Falls Short Of Expectations Amid Weak Chip Demand1 min read
Samsung Electronics has warned that its fourth-quarter profits are expected to fall significantly from the previous quarter and miss forecasts. The company struggled to meet strong demand for chips used in artificial intelligence servers, which impacted its overall performance. Operating profits for October-December are expected to reach 6.5 trillion won ($4.5 billion), up 130.5 percent from a year earlier, but down nearly 30 percent from the previous quarter and 16 percent below market estimates. Sales are expected to increase by 10.7 percent year-on-year to about 75 trillion won, but this is still lower than the previous quarter stated in a report.
The company cited weaker market conditions for its Device Solutions division, responsible for memory and foundry business units, which saw declines in sales and profits. Additionally, weak demand for conventional PC and mobile products weighed on overall performance. Samsung’s non-memory business also suffered due to weak demand from key applications and increased research and development spending.
Samsung’s consumer electronics division, which includes mobile phones, faced a decline because of reduced impact from new product launches and intensified competition.
Despite the challenges, the company’s shares rose 0.72 percent. The final earnings report is expected to be released at the end of the month.
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