Samsung released preliminary third-quarter results, highlighted by a smaller-than-expected profit decline of 78%. Samsung’s operating profit for the months of July to September was 2.4 trillion won ($1.79 billion), down sharply from 10.85 trillion won for the same period in 2023. The reasons behind the annual collapse are the slowdown of the global economy and the sharp reduction in demand for chips.
However, Samsung’s profit in the third quarter was considerably higher than the first quarter’s 640 billion won (the lowest since 2009) and the second quarter’s 670 billion won. Samsung’s operating profit of 2.4 trillion won exceeded the 2.1 trillion won forecast by LSEG SmartEstimate.
As the pandemic-induced chip boom ended, chip prices plummeted, dealing a major economic blow to Samsung, the world’s top memory chip maker.
Samsung has managed to offset losses by focusing on more profitable, high-end chips, such as DRAM, and continuing to cut production of older legacy chips.
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