The Samsung emblem is on show at their pavilion through the Cell World Congress in Barcelona, Spain, on February 28, 2024. (Picture by Joan Cros/NurPhoto by way of Getty Pictures)
Nurphoto | Nurphoto | Getty Pictures
South Korean tech big Samsung Electronics stated it expects worse-than-expected revenue for the third quarter.
In steering launched Tuesday, the world’s high reminiscence chip maker stated working revenue for the quarter ending September is projected to be round 9.10 trillion won, marking a 274% surge from last year’s 2.43 trillion Korean won. Nonetheless, the determine missed LSEG expectations.
Analysts polled by LSEG projected an working revenue of 11.456 trillion Korean received ($7.7 billion) for the quarter ended Sept. 30. Samsung’s income for the quarter was anticipated to hit 81.96 trillion received ($61 billion), in response to LSEG estimates.
Efficiency of Samsung’s reminiscence enterprise decreased on account of “one-time prices and detrimental results,” which incorporates stock changes by cellular clients and elevated provide of legacy merchandise by Chinese language reminiscence firms,” Samsung wrote in a press release.
Samsung is the main producer of reminiscence chips, that are utilized in units like laptops and servers. It’s also the world’s second largest participant within the smartphone market.
Shipments of high-bandwidth reminiscence “HBM3E” chips to main clients had been additionally delayed, the corporate added.
“Effectively, let us take a look at the quantity — very disappointing,” stated Daniel Yoo, head of worldwide asset allocation at Yuanta Securities Korea. He additionally famous that demand for legacy chips utilized in PCs and smartphones, which Samsung depends on, aren’t selecting up across the globe.
“Samsung just isn’t taking that market share as aggressively as now we have seen prior to now. That’s the large drawback that I believe we’re seeing,” Yoo added.
“The corporate wants to stay versatile about its reminiscence provide management, because the downfall of standard DRAM will probably damage Samsung greater than its smaller rivals,” Macquarie Fairness Analysis analysts stated in a latest observe. DRAM refers to dynamic random entry reminiscence chips which might be typically utilized in laptops, workstations and PCs.
Samsung had instructed its subsidiaries world wide to cut back 30% of workers in some divisions, Reuters reported in September, citing two sources with data of the matter.
Shares of Samsung Electronics listed in South Korea’s inventory alternate have seen a 22% lower year-to-date, LSEG knowledge confirmed. The corporate is ready to launch detailed third-quarter outcomes later this month.
Samsung’s shares slipped 0.98% following the discharge of the steering.