Samsung reported preliminary financial results for Q3 2024. They turned out to be disappointing and did not meet the forecasts. Because of this, the company apologized to investors, Bloomberg reports.
In general, the company reported a lower than expected increase in operating profit to 9.1 trillion won or $6.8 billion in Q3 2024. Revenue of 79 trillion won or about $58.6 billion also fell short of expectations. The full financial report with all the details will be published on October 31.
It is known that operating profit did not meet expectations partly due to one-time performance bonuses. In addition, the company's memory chip business also showed disappointing results, which was reflected in the overall revenue.
Samsung admitted that it had problems with delays in the supply of a key type of chip used in NVIDIA's AI training processors. As a result, another South Korean company, SK Hynix, was able to seize the lead in high-speed memory.
Young-Hyun noted that the company now needs to review its organizational culture and processes. He added that the management takes full responsibility for Samsung's current situation. The company has already started laying off employees in Southeast Asia, Australia and New Zealand as part of a plan to reduce its global workforce by thousands of jobs.
Young-Hyun also noted that the company's first goal now will be to restore the competitiveness of its technologies. In addition to this, he stated that Samsung will focus on new technologies instead of resorting to short-term solutions.
"First of all, we will restore the fundamental competitiveness of technology. Technology and quality are our life. It is the pride of Samsung Electronics that can never be compromised. Instead of short-term solutions, we will ensure fundamental competitiveness. In addition, I believe that new technologies that are not available in the world and competitiveness of perfect quality are the only way for Samsung Electronics to take off again," Young-Hyun wrote.