The leading memory chip manufacturer, Samsung, projected an operating profit of approximately 9.10 trillion Korean won for the quarter ending in September, which fell short of the expectations set by LSEG. Analysts polled by LSEG estimated that the operating profit for the period would be around 11.456 trillion Korean won, equivalent to $7.7 billion.
Samsung reported that the decline in its memory division’s performance was attributed to “one-time costs and negative impacts.” These included inventory adjustments from mobile clients and an increased supply of older products from Chinese memory firms.
In an address to customers, investors, and employees, Samsung Electronics’ management expressed regret over failing to meet market expectations, acknowledging the concerns regarding the company’s technological competitiveness and future prospects. The company assumed responsibility for the situation, which has been widely discussed as a crisis.
Despite these challenges, the management emphasized Samsung’s history of turning crises into opportunities through challenge and innovation. They pledged to transform the current difficulties into a chance for growth and vowed to take the lead in overcoming the crisis.
The management outlined several key strategies, including restoring fundamental technological competitiveness and focusing on technology and quality without compromise. They emphasized the importance of securing fundamental competitiveness through new technologies and perfect quality standards to facilitate a comeback.
Samsung also promised thorough future preparations, encouraging a pioneering and goal-oriented spirit within the organization. This approach aims to foster a challenging mindset rather than a defensive one.
Moreover, they committed to reassessing their organizational culture and working methods, aiming to rebuild their traditional culture of trust and communication. By identifying issues in the workplace and openly addressing them, Samsung intends to drive improvements and actively communicate with investors.
In conclusion, Samsung’s management expressed confidence in their ability to turn the current crisis into a new opportunity, seeking support and encouragement from all stakeholders as they strive to reestablish their strength.
—CNBC’s Chery Kang contributed to this article.
