Samsung reports Q3 results forecasting strong smartphone, tablet and smartwatch sales in 2024،
Even if
Samsung’s operating profit fell 78% In the third quarter, at 2.4 trillion won ($1.78 billion), compared to 10.85 trillion won ($8.05 billion) a year ago, third-quarter operating profit was up ‘now the highest of the year. The company spent 11.4 trillion won ($8.45 billion) on capital expenditures and is expected to shell out 53.7 trillion won ($39.82 billion) for all of 2024.
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This year’s first quarter operating profit was 640 billion won ($474.6 million), and second quarter operating profit was 670 billion won ($496.9 million). Third-quarter operating profits were higher than those of the first and second quarters combined. Third-quarter revenue fell 12 percent to 67.4 trillion won ($50 billion). In the most recent quarter,
Samsung managed to reduce its losses in memory chips by 14 percent, from 4.36 trillion won to 3.75 trillion won, by focusing on cutting-edge DRAM chips supporting supports AI and reducing production of older chips.
Smartphone and PC makers have struggled with weak consumer demand and decided to reduce their chip inventories instead of spending to replenish their stocks. But Samsung predicts better times for memory chips and said: “PC and mobile demand will likely benefit from the arrival of some product replacement cycles.” Foreshadowing this improving trend, chip prices began to rise late in the third quarter.
SK Hynix, Samsung’s memory chip rival, recently said that DRAM chips are benefiting from an “AI boom.” The combination of improving demand and previous production cuts is starting to incentivize customers to place orders as prices stabilize.
In 2024, Samsung expects the smartphone market to grow as consumers begin spending in anticipation of a global economic recovery. Premium phones and tablets will see growth. The smartwatch segment will see double-digit growth and the true wireless stereo market is expected to see modest growth.
Strong demand for high-end OLED panels from smartphone makers is expected to continue next year, helping Samsung Display’s business strengthen. Samsung said that in 2024, “the mobile panel business plans to meet growing demand for new applications, while the large display business will improve profitability by adding new products and improving yields.”
The semiconductor unit completed development of the Exynos 2400 during the quarter and the deca-core chip will offer improved CPU, GPU and NPU performance compared to its predecessor. Samsung says: “The mobile SoC segment is in the final stages of development of next year’s flagship smartphones and is poised to expand its business portfolio by targeting global customers for the modem sector, while also enhancing the solution’s capabilities for on-device AI. » Samsung hopes to improve the sector’s results in 2024 by increasing its sales of flagship semiconductors and selling chips to manufacturers outside the mobile industry.
Samsung Foundry reported weak third-quarter profits as a slowdown in the mobile sector caused a delay in the expected increase in Foundry’s manufacturing plant utilization rate. Fourth-quarter results in this segment are expected to improve as demand increases with the release of new devices. Samsung is improving the yield of its production of second-generation 3nm process nodes, which should help it generate more business.
On the Korean Stock Exchange, Samsung shares are trading at 67,200 won per share ($49.87), down 100 won (7.4 cents) for the day. The 52-
week high is 73,600 won ($54.64), while the 52-week low is 54,500 won ($40.46).
