Islamabad, Oct 8: Samsung Increases Sales but Faces Decline in Profits in Q3 2024. In comparison to initial forecasts, Samsung Electronics expected a 10% decline in Q3 2024 profits. The main reason is an unanticipated delay in an AI chip sale with an undisclosed significant client, though the company provided no other information.
Samsung’s mobile sector reported an increase in earnings over the previous quarter, which coincided with the release of the foldable Galaxy Z Fold 6 and Galaxy Z Flip 6 smartphones, despite this setback. The display division also profited from Apple’s iPhone releases, a large number of which used panels manufactured by Samsung.
According to multiple analysts cited by Reuters, Samsung’s earnings are expected to stay flat for the current quarter. The business is nevertheless lagging behind SK Hynix, whose sales of HBM chips a crucial part of AI processing are rising.
Samsung is now obliged to rely on conventional, lower-margin processors as a result of its delayed entry into the AI chip industry. Chinese producers are becoming more and more competitive in this industry as demand declines.
Young Hyun Jun, vice chairman of Samsung’s Device Solutions division, said, “These are testing times for the company,” acknowledging the company’s present difficulties. Jun promised to increase Samsung’s long-term technological competitiveness and stated his will to turn these challenges into opportunities.
Recently, Samsung’s mobile sector has been the company’s financial savior. Since its arrival at the beginning of the year, customers have been enjoying the newest Galaxy S series phones, which have sold better than both the Galaxy S23 and the Galaxy S22. In terms of performance, the Galaxy S23 was comparable to its predecessor.
