TapTechNews October 8th news, Samsung Electronics today announced its earnings guidance for the third quarter of 2024, both profit and revenue failed to meet market expectations, raising concerns about the uncertainty of the prospects of its key chip division.
In response, JunYoung-hyun, the head of Samsung Electronics' chip business, apologized for the performance. JunYoung-hyun said in a statement, We have raised concerns about technological competitiveness, and some people talk about the crisis facing Samsung. He said that as an industry leader, they are fully responsible for this.
The preliminary operating profit of Samsung Electronics in the third quarter is about 9.1 trillion Korean won (TapTechNews note: currently about 47.75 billion Chinese yuan), while it is expected to be 11.5 trillion Korean won. Revenue reached 79 trillion Korean won (currently about 414.75 billion Chinese yuan), while the expected is 81.6 trillion Korean won.
The share price of Samsung Electronics has fallen by more than 20% this year. In terms of AI memory chips, the company is currently facing strong competitor SK Hynix, and is also lagging behind TSMC in the outsourcing production of custom chips.
Considering the difficulties of Samsung Electronics' chip division in recent weeks, analysts have significantly lowered Samsung's target price. Macquarie downgraded Samsung's performance from outperforming the market to neutral in its report on September 25 and lowered the target price from 125,000 Korean won to 64,000 Korean won.