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Samsung Electronics apologises for disappointing profit as it struggles in AI chips

Economic Times · 1m

- Samsung Electronics warned of lower-than-expected third-quarter profits due to delays in its AI chip business and increased competition from Chinese chip rivals. - Samsung's operating profit for the quarter is estimated at 9.1 trillion won, falling short of market expectations. - The company's late entry into the AI chip market has increased its reliance on traditional, lower-margin chips, making it vulnerable to competition from China. - Samsung's share price fell 1.6% following the earnings guidance, adding to the more than 20% decline it has already experienced this year. - The company's contract chip manufacturing business likely continued to struggle against TSMC, losing money in the third quarter. - Samsung's mobile division saw improved earnings from solid sales of flagship smartphones, while its display unit grew with new product launches from customers like Apple. - Samsung will announce detailed earnings results later this month.