Samsung Q2 profit more than halves on chip slump

Samsung Electronics On Thursday, on Thursday, I reported a operating profit in the second quarter of 4.7 trillion Korean ($ 3.38 billion), missing expectations, weighing 93.8 % of profit in her work work.

While operating profits in the second quarter of Samsung defeated its expectations of about 4.6 trillion Won, it was a sharp decrease of 10.44 trillion Won recorded in the same period last year.

The South Korean technology giant achieved a quarter -annual revenue of 74.6 trillion Won, a slight increase of 74.07 trillion Won per year before and its 74 trillion Won’s expectations.

Here are the results of Samsung in the second quarter compared to Lseg Smartestimate, which are weighting towards predictions than analysts who are more accurate:

• profit: 74.6 trillion Won ($ 53.5 billion) compared to 74.43 trillion Won
• Operating profit: 4.7 trillion Won for 5.33 trillion Won

Samsung shares decreased by up to 1.65 % in trading.

It is worth noting that the company’s device solutions section, which includes its memory chip, the design of semiconductors and masculine business units, is a 93.8 % decrease in public profit on an annual basis.

Samsung Electronics has recorded a 400 billion -winged profit in the second quarter, with a decrease from 6.45 trillion Won in the same period last year. The revenues of the chips fell to 27.9 trillion Won, from 28.56 trillion Won last year.

The company said in a statement, “The amendments to the value of the inventory in the memory and one -time costs related to the effects of export restrictions on China in other than memory had a negative impact on profit,” the company said in a statement.

However, in his speech in a profit call, the financial manager of Sister’s Soys-CEOL Park expressed some optimism of the company in the short term.

He said: “Despite the ongoing global economic concerns that are driven by unconfirmed commercial policies and geopolitical tensions, the IT industry seems ready to gradually recover by momentum in artificial intelligence and robots.”

He added, “In this context, we expect a recovery in our performance in the second half, in the aftermath of the bottom in the second quarter, where the profits are expected to improve steadily with the progress of the year.”

Samsung’s executive official indicated that The conclusion of commercial negotiations Between South Korea and the United States helped reduce uncertainty, but the company was monitoring more details and Washington investigation in the semiconductor industry It can lead to a new tariff.

Samsung Foundry can also receive a long -term batch of a 16.5 billion dollars contract To supply chips for a major company in a deal announced on Monday.

While Samsung did not initially disclose the opposite party, the CEO of Tesla El Musk said that he was his maker in American electric cars, and that the so -called AI6 chips would be made in Samsung’s The upcoming Burundian Armed Forces in Taylor, Texas. Musk added that the deal may be greater than it was announced.

Nam Hyung Kim, research partner and stock research analyst in Aryti, told CNBC that the main goal of the Tesla for Samsung can attract other potential customers to its causative work.

However, “production costs on Taylor are expected to be much higher than those in Korea,” adding that it is too early to conclude that the deal will improve from the Samsung site against the market leader Taiwan semiconductor manufacturer.

Nile Shah, deputy head of research in counter -research, said in a statement before the profits, that Samsung Foundry Business is currently in a “critical turn between survival and profitability.”

The company was traditionally the pioneer of the market in memory. But this force is threatened because it fails to compete Sk Hynix In high frequency domain memory, or HBM – a type of memory used in artificial smart computing.

A a report From Counterpoint Research earlier this month, SK Hynix found Samsung memory revenues in the second quarter, both competing for the highest center in the global memory market.

In the second half of the year, Samsung said it plans to meet the increasing demand for increased products on high -value -added products and continues to enhance competitiveness in advanced semiconductors.

Samsung has It is said She was working to get the latest version of AI Chip Darling HBM Nafidia. but, Analysts expect SK Hynix dominance in HBM to continue this year.

Earlier this month, Samsung Three new foldable smartphones launched While the company is looking to keep pace with the offers from Chinese competitors.

Samsung successfully defended its main position in the global smart phone market in the second quarter, according to a report From the Canalys Technology Research Company, is now part of omdia. Samsung has a 19 % stake in the market through unit sales, mostly due to the sales of the Galaxy A series.

“The move to the second half of the year, in general, is expected to shrink the demand for smartphones slightly on an annual basis, due to concerns about the high customs tariffs in mature markets and the constant slowdown by persistent inflation,” said Daniel Araojo, Vice President of Samsung for the Mobile Experience.

He added: “However, the distinctive part is expected to grow modestly, driven by changing consumer preferences towards high -end products, in part due to economic growth in emerging markets.”