Samsung recently surprised the market with an unusual statement: the technology giant apologized for recording “only” $6.78 billion in operating profit in the most recent quarter, missing analysts’ expectations of around $900 million. . The statement, attributed to Vice President Jun Young-hyun, acknowledged concerns raised about the company’s technological competitiveness and future, saying executives took responsibility for the “disappointing” results.
The cause of the crisis
Samsung has faced a difficult period since the pandemic, with a decrease in demand for memory chips. The situation seemed to be improving thanks to the artificial intelligence boom, which increased the company’s profits 15 times in the previous quarter, thanks in part to the sale of high-bandwidth (HBM) chips to customers such as Nvidia. However, Samsung revealed that sales of the HBM3E were delayed due to a major customer, thus providing room for competitors, such as SK Hynix, to fill the void.
La GPU NVIDIA H100.
Chinese competition is also exerting increasing pressure, especially in sales of chips used in devices such as smartphones. Precisely for this reason, to face the crisis, the company has imposed a six-day working week on managers and is committed to improving technological competitiveness.
Samsung’s commitments for the future
In his message, Jun outlined the company’s plans to overcome the crisis and turn it into a growth opportunity. Samsung intends:
Strengthen technological competitiveness, improving quality and investing in new unique technologies. Prepare better for the future by pushing towards a corporate culture that aims for ambitious goals. Examine and improve the organization, to ensure internal communication and trust.
Jun concluded his statement by asking for the support of customers, investors and employees, convinced that Samsung can overcome the crisis and regain its strength.
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