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| Samsung Exceeds Expectations Despite Low Q3 Profits |
Samsung has released its preliminary Q3 financial results, indicating a less drastic profit decline than expected, at 78%. Between July and September, Samsung reported an operating profit of 2.4 trillion won, a significant decrease from the 10.85 trillion won recorded in the same period in 2023. This decline was primarily attributed to the global economic slowdown and a substantial reduction in chip demand.
Despite this yearly downturn, Samsung's Q3 profit, though lower than the first quarter's 640 billion won (the lowest since 2009) and the second quarter's 670 billion won, exceeded expectations. The 2.4 trillion won operating profit surpassed the forecasted 2.1 trillion won according to LSEG Smart Estimate.
Due to the drop in chip demand post-pandemic surge, chip prices plummeted, presenting a major economic challenge for Samsung, a key player in memory chip manufacturing. To mitigate these losses, Samsung focused on producing more profitable advanced chips like DRAM while reducing the production of older legacy chips.
Apart from semiconductor chip production, Samsung is also engaged in manufacturing OLED panels for mobile phones and TVs, camera sensors, and various other products.
