The Samsung emblem is on uncover at their pavilion throughout the Mobile World Congress in Barcelona, Spain, on February 28, 2024. (Photo by Joan Cros/NurPhoto thru Getty Photos)
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South Korean tech big Samsung Electronics talked about it expects worse-than-expected revenue for the third quarter.
In steering released Tuesday, the enviornment’s top memory chip maker talked about running revenue for the quarter ending September is projected to be round 9.10 trillion wonmarking a 274% surge from closing year’s 2.43 trillion Korean won. Then but again, the figure passed over LSEG expectations.
Analysts polled by LSEG projected an running revenue of 11.456 trillion Korean won ($7.7 billion) for the quarter ended Sept. 30. Samsung’s revenue for the quarter used to be expected to hit 81.96 trillion won ($61 billion), per LSEG estimates.
Samsung Vice Chairman, Jun Young-hyun, who’s the unique head of the firm’s Tool Solutions Division, additionally issued a uncommon apology following the originate.
Performance of Samsung’s memory industrial lowered as a result of “one-time costs and negative effects,” which contains inventory adjustments by mobile potentialities and elevated provide of legacy merchandise by Chinese language memory corporations,” Samsung wrote in a statement.
Samsung is the leading manufacturer of memory chips, which are utilized in devices like laptops and servers. It is also the world’s second largest player in the smartphone market.
Shipments of high-bandwidth memory “HBM3E” chips to major customers were also delayed, the company added.
“Effectively, let’s watch at the quantity — very disappointing,” said Daniel Yoo, head of global asset allocation at Yuanta Securities Korea. He also noted that demand for legacy chips used in PCs and smartphones, which Samsung relies on, are not picking up around the globe.
“Samsung is no longer taking that market allotment as aggressively as we now gain considered in the past. That is the extensive subject that I gain we’re seeing,” Yoo added.
“The firm desires to dwell flexible about its memory provide adjust, since the downfall of inclined DRAM will likely damage Samsung bigger than its smaller competitors,” Macquarie Equity Research analysts said in a recent note. DRAM refers to dynamic random access memory chips that are often used in laptops, workstations and PCs.
Samsung had instructed its subsidiaries around the world to reduce 30% of staff in some divisions, Reuters reported in September, citing two sources with knowledge of the matter.
Shares of Samsung Electronics listed in South Korea’s inventory alternate gain considered a 22% decrease year-to-date, LSEG knowledge confirmed. The firm is made up our minds to originate detailed third-quarter results later this month.
Samsung’s shares slipped 0.98% following the originate of the steering.
