Samsung’s profit misses forecasts, falls sharply toward the previous quarter as costs grow

Samsung Electronics On Friday, he reported better than the expected revenue from the fourth quarter, although his operative profit dropped sharply compared to the previous three months due to the higher R&D costs in the segment of his chips.

Here are the results of the fourth quarter of Samsung compared to LSEG Smartestimate, which weighed to forecasts by analysts, which are more consistently accurate:

• Revenue: 75.8 trillion Korean won ($ 52.2 billion) versus $ 75.4 trillion
• Operational: 6.5 trillion KRW against 6.8 trillion KRW

The revenue increased by about 12% compared to last year, while operating profit increased by about 130%, year to year. However, the operating profit fell nearly 30%, and the revenue dropped by more than 4%, the quarter per quarter, against the background of soft market conditions and an increase in the cost of the company.

Winning from fourth quarter revenue Samsung’s own 75 -trillion Samsung management while operating profit is in line with the company’s forecast.

Samsung is a leading manufacturer of memory chips, which are used in devices such as laptops and servers, and is also the second largest player in the world in the smartphone market.

“Although the fourth quarter revenue and operating profit decrease on the basis of quarterly per quarter (QOQ), annual revenue reached the second highest record, exceeding only in 2022,” Samsung said in His statement.

For the whole year, Samsung reported 300.9 trillion KRW and 32.7 trillion KRW with operating profit. In 2023, the company reported an annual revenue of 258.94 trillion KRW and an operational profit of 6.57 trillion KRW.

For the current quarter, Samsung said that profit could be limited due to weakness in its semiconductor business, but that it would pursue growth through AI smartphones and other first -class devices.

“For 2025, the company generally plans to improve the technological and products of AI products, to continue to meet the future demand for high -value products and to stimulate sales growth in premium segments,” she added.

Samsung’s shares fell 2.2% in South Korea on Friday morning, while SK Hynix shares fell over 11% as the South Korean markets resumed trade after a four -day break. Asian technological specialties face pressure from the latest artificial intelligence model from Chinese Deepseek, which threatens to raise the ecosystem, led by the United States.

Samsung Electronics Chip Business reported an operating profit of 2.9 trillion KRW in the fourth quarter, which is over 25% compared to the three months ending in October, while its annual annual is annual The numbers came up below SK HYNIX.

This was, although Samsung’s memory business, a record high revenue from the fourth quarter of 30.1 trillion, aided by the search for its sophisticated memory products used for AI applications.

“(O) Profit appreciation decreases slightly compared to the previous quarter as a result of the increased cost of providing future technological leadership, as well as the initial costs of increasing the production capacity for avant -garde nodes,” Samsung said.

Samsung and SK Hynix provide DRAM or dynamic memory for any access, products – type of semiconductor memory required for data processing.

However, SK Hynix left Samsung behind in HBM or a high -band memory, DRAM, in which the chips are vertically arranged to save space and reduce energy consumption. HBM products are observed in a thriving demand due to the use of highly effective computing applications such as AI.

“They have lost a share in the high bandwidth business … There, SK Hynix has really jumped in front of Samsung,” Eric Ross, an analyst at Cascend Securities, said on Friday.

He noted that AS Dram Maker Micron also received a company position.

“Samsung is something like the wrong pieces of the DRAM market right now because they missed a high bandwidth piece and they really need to catch up with it,” he said, adding that PC’s DRAM markets and smartphones are under valuable pressure.

According to Samsung, memory business reduces hereditary products to better bring market demand and increase its share of high-value products such as HBM.

“In 2025, the overall demand for the memory market is expected to recover from the second quarter,” Samsung said, warning that his revenue is expected to remain weak in the current quarter.