Samsung Q3 2024 earnings estimation is painful

Today, Samsung disclosed its earnings estimation for Q3 2024. The company’s top leadership also issued a rare apology for its lack of innovation, admitting that despite the AI chip boom, the company missed the opportunity for growth.

Samsung announced its provisional results for Q3 2024, reporting sales of 79 trillion KRW and an operating profit of 9.1 trillion KRW. The company will soon release final results, which could be just marginally different.

The Korean tech giant further revealed that sales increased by 6.66% while operating profit decreased by 12.84% quarter over quarter. Besides, the sales rose by 17.21% and operating profit surged by 274.49% year-on-year.

• Consolidated Sales: Approximately 79 trillion Korean won
• Consolidated Operating Profit: Approximately 9.1 trillion Korean won

Samsung’s flagship and foldable phones scored lower than expected sales. The company’s semiconductor business is already in crisis due to yield issues. Samsung is facing concerns in multiple ways leading it to a critical stage.

TSMC continues to widen the gap in the international foundry market. Its rivals in the memory chip market like SK Hynix are also giving fierce competition. Late entry into the cutting-edge AI memory semiconductor market also made things painful.

We’ve seen reports Samsung could be laying off employees in various countries. The company could cut its workforce and focus on growth further. DS Division could also see a major reshuffle to return to the pace of growth.