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Ukrainian President Volodymyr Zelenskyy said on Saturday that Kyiv has signed new agreements with international partners to boost joint arms productio...
Samsung Electronics, the global leader in memory chips, smartphones, and televisions, has released its fourth-quarter operating profit estimate, revealing a significant shortfall compared to analyst expectations. The South Korean tech giant reported an estimated operating profit of 6.5 trillion won.
Samsung's fourth quater results, although a remarkable 131% increase from the same period last year, missed the consensus estimate of 7.7 trillion won, as projected by LSEG SmartEstimate.
The disappointing earnings were attributed to a number of factors, including Samsung’s struggles in the high-end chip market, where it faced fierce competition from rival SK Hynix. The company has been notably lagging behind SK Hynix in supplying premium chips to Nvidia, a key player in the semiconductor industry. Nvidia's demand for advanced chips, particularly those used in data centers and artificial intelligence (AI) applications, has surged in recent months, but Samsung has not kept pace with its competitors.
Samsung's business of designing and contract manufacturing logic chips also experienced a downturn during the quarter. The slowdown in global smartphone demand, combined with lower factory utilization rates and rising research and development costs, contributed to the overall decline in earnings from this segment. These challenges are particularly evident in the mobile industry, where demand has remained sluggish due to economic uncertainties and changing consumer preferences.
While Samsung’s estimated Q4 profit is still substantially higher than last year’s figures, it marks a significant decline of 29% from the previous quarter. This drop in earnings highlights the ongoing challenges faced by Samsung’s semiconductor business, which has long been a major driver of the company's overall profitability. The slowdown in chip demand, coupled with intense competition from other memory chipmakers, has put pressure on Samsung's market position in recent months.
Despite the disappointing earnings report, Samsung’s shares initially dropped by 1% in early trading following the announcement. However, they later rebounded and rose more than 1%, suggesting that investors remain cautiously optimistic about the company's future prospects, particularly in the long term.
Samsung's ability to regain momentum in its semiconductor business will be crucial to its overall performance in 2025. As competition in the chip industry intensifies, Samsung will need to adapt to changing market dynamics and invest in new technologies to stay competitive. The company’s ability to meet the growing demand for high-end chips, especially those used in AI and data centers, will play a pivotal role in shaping its financial outlook in the coming months.
The European Commission is set to propose allowing carbon credits from other countries to count towards the EU’s 2040 climate target, according to a leaked internal document.
A magnitude 5.5 earthquake struck off Japan’s Tokara Islands on Wednesday, with no tsunami warning issued but residents advised to remain vigilant.
The United States has rescinded licensing restrictions on ethane exports to China, allowing shipments to resume after a temporary halt and signalling progress in efforts to ease recent trade tensions.
Italy plans to grant approximately 500,000 work visas to non-EU nationals between 2026 and 2028, as announced in a cabinet statement. The initiative aims to address labor shortages by expanding legal immigration pathways
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Microsoft is closing its direct operations in Pakistan after 25 years, shifting to a partner-led model to serve the market.
The European Union will drastically reduce imports of Ukrainian wheat and sugar, by up to 80%—to protect its farmers, a move expected to shift Ukraine's exports toward Asia and Africa.
The Bank of England has launched a public consultation on future banknote designs.
Unexpected weakness in Germany's manufacturing orders in May signals ongoing uncertainty in industrial demand, despite a yearly rise and sector-specific gains.
Oil futures fell on Friday after Iran reaffirmed its commitment to nuclear non-proliferation and amid expectations that major producers are set to agree to raise their output this weekend.
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