Samsung Electronics' chip profit shrinks 40% from the previous quarter

Samsung Electronics connected Thursday reported third-quarter income and operating nett somewhat supra its ain expectations, but its spot concern posted a sharply little nett from the erstwhile quarter.

The semiconductor portion reported third-quarter operating nett of 3.86 trillion won (about $2.8 billion), down 40% from the erstwhile quarter.

While its representation spot portion benefited by beardown request for its artificial quality and accepted server products, Samsung said "inventory adjustments negatively impacted mobile demand." The institution said it was besides contending with "the expanding proviso of bequest products successful China."

Samsung is the apical shaper of representation chips utilized successful devices similar laptops and servers, and it ranks arsenic the second-largest subordinate successful the smartphone marketplace worldwide.

While artificial quality drove request for precocious nodes from its foundry unit, Samsung said mobile and PC request underperformed. The Korean tech elephantine said the rebound successful mobile and PC request volition beryllium delayed, though involvement successful much precocious products volition proceed to grow, driven by AI investments.

Here are Samsung's results compared with the guidance it issued earlier this month:

• Revenue: 79.1 trillion won vs. 79 trillion
• Operating profit: 9.18 trillion vs. 9.1 trillion won

Those guidance figures were markedly little than the LSEG estimation for 11.456 trillion won successful operating profit. Samsung Vice Chairman Jun Young-hyun, the caller caput of the company's instrumentality solutions division, issued a uncommon apology aft the guidance release.

Samsung expects request for these precocious chipsets to proceed to substance maturation adjacent year. The institution said it besides expects server request to stay beardown arsenic tech companies proceed to marque "robust investments."

Shares of Samsung Electronics listed successful the South Korean banal speech person dropped 24.71% truthful acold this year.

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