Samsung Electronics said third-quarter operating profit fell 77.57%

South Korea’s Samsung Electronics announced that its operating profit fell 77.57% year-on-year to 2.4 trillion won (approximately US$1.7 billion or RM8.4 billion) from July to September, despite the launch of new smartphones boosting revenue. This result is basically consistent with Samsung’s previous forecast of a 77.9% profit drop. Although significantly lower than in 2022, the profit in the third quarter was much higher than the 640 billion won in the first quarter and 670 billion won in the second quarter.

Samsung said its net profit fell 37.7% year-on-year to 5.8 trillion won, rebounding from 1.7 trillion won in the second quarter. Although the recovery of semiconductor demand is delayed and the network business is limited by the reduction of investment by mobile operators, Samsung expects the memory market to recover, especially the strong demand for servers in the fields of artificial intelligence, high density and high-end products. The company plans to drive artificial intelligence applications through customized hyper-connected experiences and new areas of security technology.

Market research firms said the earnings results were better than expected, helped in part by narrowing chip losses and strong performance in the mobile devices and display units. However, the global economic slowdown has had a negative impact on memory chip sales, and Samsung has also cut memory chip production.

(Source: AFP) Image source: freepik)