Samsung Projects Q4 Profit Drop, Missing Market Expectations

The electronics giant cites weak demand for conventional chips and rising R&D costs despite record-high revenue for high-capacity products.

Samsung Electronics forecasts a Q4 2024 operating profit of 6.5 trillion won ($4.5 billion), a 30% decline from the previous quarter and 16% below market estimates.
Sales are projected to rise 10.7% year-on-year to approximately 75 trillion won but fall 5.2% compared to Q3 2024.
The company's Device Solutions division, responsible for memory and foundry operations, reports reduced sales and profits due to weaker demand for IT-related products.
Non-memory chip performance also struggled because of low demand in key applications and increased investment in advanced chip manufacturing processes.
Samsung's consumer electronics division, including mobile phones, saw a downturn driven by intensified competition and reduced impact from new product launches.