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.
Iranian-made Yassin missiles were spotted mounted on Armenian Air Force fighter aircraft during Armenia's latest military parade on Thursday (28 May),...
The Philippines remains under a "severe threat" from China despite recent efforts by Washington and Beijing to ease tensions, Philippine Defence Secre...
Russia has recalled its ambassador to Armenia for consultations, citing Yerevan's growing rapprochement with the European Union. The move is seen as t...
At least 22 people have been killed - including children - and 35 others injured after a truck carrying Afghan returnees overturned in eastern Afghani...
U.S. Defense Secretary Pete Hegseth has urged Asian allies to increase military spending, warning of growing concern over China’s rapid military exp...
South Korean workers manufacturing chips for Samsung Electronics are set to vote on a pay deal that could see some of them receive $416,000 in bonuses.
Samsung Electronics and its labour union commenced high-stakes talks on Monday (18 May) in a last-ditch bid to avert what would be the biggest strike in the tech giant's history.
Negotiations between Samsung Electronics and its workforce on Wednesday have broken down, officials said, raising fresh concerns over potential disruption to South Korea’s export-heavy economy.
The first week of 2026 is packed with excitement for tech enthusiasts, as CES 2026 kicks off in Las Vegas. This year, major brands are unveiling groundbreaking products, from futuristic TVs and AI-powered gadgets to next-gen chips and innovative gaming tech.
A group of Azerbaijani civil society organisations has called for increased scrutiny of Swiss building materials giant Holcim, citing court rulings and ongoing investigations linked to its subsidiary Lafarge's activities during the Syrian conflict.
The World Health Organization (WHO) says ongoing conflict, funding pressures and international travel restrictions are complicating efforts to contain a fast-growing Ebola outbreak in the Democratic Republic of Congo (DRC).
Thai rescuers say five people have been pulled alive from a flooded cave in remote Laos, where seven villagers became trapped after heavy rain cut off access underground.
Russia and Kazakhstan signed 15 agreements during President Vladimir Putin’s state visit to Astana on Thursday (28 May), including deals on Kazakhstan’s first nuclear power plant and expanded oil cooperation with Russia.
European companies are continuing to deepen their presence in China, with nearly seven in ten firms maintaining or expanding their supply chains despite global efforts to diversify, according to a new survey by the EU Chamber of Commerce.
BP has removed its chair, Albert Manifold, with immediate effect, citing concerns over governance and conduct. The company said its board had unanimously decided that Manifold should no longer serve as chair or director.
The dual-class share structure outlined in SpaceX’s initial public offering (IPO) filing, which gives chief executive Elon Musk outsized control, has reignited one of Wall Street’s longest-running debates over corporate governance.
Kevin Warsh will be sworn in as chair of the U.S. Federal Reserve on Friday as policymakers consider higher interest rates to tackle inflation linked to the Trump administration’s Iran policy.
A government-mediated agreement has suspended an 18-day walkout by about 48,000 Samsung union members, easing fears of damage to South Korea's economy and global chip supply.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment