Samsung apologises for disappointing quarterly results during AI chip boom

In a rare apology, the company vows to review its culture and processes to enhance competitiveness

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Samsung reported worst-than-expected revenue and operating profit for the September quarter. Photo: dpa

Published: 9:59am, 8 Oct 2024Updated: 3:56pm, 8 Oct 2024

Samsung Electronics issued a lengthy apology after posting disappointing results, an unusual admission by the world’s largest memory maker that it is grappling with a potential crisis.

The company will review its organisational culture and processes, Jun Young-hyun, the newly appointed head of its chip business, said in a statement. “Rather than relying on short-term solutions, we will focus on reinforcing our long-term competitiveness,” he said. “These are testing times.”

The world’s biggest maker of both memory and smartphones reported preliminary operating profit of around 9.1 trillion won (US$6.8 billion) in the September quarter versus the 11.5 trillion won projected. A one-time cost related to provisions for performance-related bonuses weighed on earnings, it said.

Revenue came to 79 trillion won, compared with expectations for 81.57 trillion won.

A Samsung store in Seoul, South Korea. Photo: Bloomberg

Samsung plans to provide a full financial statement with net income and divisional breakdowns later this month.

“We have caused concerns about our technical competitiveness, with some talking about the crisis facing Samsung,” Jun said. “As leaders of the business, we take full responsibility for this.”