Samsung Reports Weaker-Than-Expected Q3 Profit

Samsung Electronics Co Ltd recently announced a third-quarter profit estimate that fell short of expectations, indicating a slowdown in the initial surge of demand driven by artificial intelligence.

The South Korean giant projected an operating profit of approximately 9.10 trillion won (around $6.77 billion) for the quarter ending September 30. This figure is significantly lower than financial analysts’ expectations of 11.48 trillion won.

While the forecast represents a substantial increase from the 2.43 trillion won reported during the same period last year, it shows a decline compared to Samsung’s operating profit of 10.44 trillion won in the second quarter.

The company anticipates consolidated sales to reach 79 trillion won, rising from 67.4 trillion won in the previous year and 74.07 trillion won in the preceding quarter.

Samsung is striving to compete with smaller firms such as SK Hynix and Micron Technology in the advanced memory chip market, particularly for applications related to AI. Although the AI sector has fueled demand for its memory chips, particularly those utilized in servers and data centers, Samsung is facing challenges due to decreased demand for chips used in personal devices. This trend has impacted sales of Samsung’s conventional DRAM products, compounded by increased competition from Chinese foundries.