Information Technology Samsung's annual report for the fourth quarter disappoints
The South Korean electronics giant Samsung expects an operating profit of 6.5 trillion won (around 4.1 billion Swiss francs) for the fourth quarter, more than twice as much as a year ago. However, this falls short of market expectations.
08.01.2025, 07:52
SDA
Compared to the previous third quarter of 2024, profits fell by just under 30 percent, according to a statement from the company on Wednesday. According to a survey conducted by South Korea's official news agency Yonhap, the company missed experts' forecasts by an average of almost 16 percent.
New chips
The share price of Samsung Electronics nevertheless rose by more than three percent by midday (local time). However, the rise is mainly attributed to a recent statement by Nvidia CEO Jensen Huang.
During the CES technology trade fair currently taking place in Las Vegas, he indicated that Samsung would soon achieve the necessary qualifications to supply so-called HBM chips (high-bandwidth memory) to the US market leader. "They are working on it. They will succeed, no question about it," said Huang according to media reports.
Increasing competition
Analysts attribute the comparatively weak quarterly figures on the one hand to the fact that demand for smartphones and PCs has cooled somewhat. Above all, however, Samsung is lagging behind in the development of high-performance semiconductors in the AI market. Domestic competitor SK Hynix in particular is putting the company under heavy pressure.
The business figures are only an initial estimate. The Group will only publish more precise figures at a later date, probably at the end of the month.
