Samsung national flag chip slows down with the sharp decline in the profit of the previous quarter

Samsung Electronics The report on Friday said that its operating profit has dropped sharply since the past three months as the chip business has slowed down.

The operating profit of this Korean company has lost expectations, but the revenue of South Korean companies exceeds the fourth quarter revenue.

Compared with LSEG Smartestimate, this is the fourth quarter of Samsung.

• income: 758 trillion South Korea winning ($ 52.2 billion) and KRW 75.4 trillion
• Operating profit: KRW 6.5 trillion and KRW 6.8 trillion

Revenue increased by about 12 % over last year, while operating profit increased by about 130 %. However, operating profits fell by nearly 30 %, and revenue fell by more than 4 %, quarterly, quarterly, and company expenditure increased.

Increase festival in the fourth quarter Samsung's own KRW 75 trillion KRW guidance, while operating profit meets the company's forecast.

Samsung is the leading manufacturer of memory chips. The manufacturer can be used for laptop computers and servers and other equipment. It is also the second largest player in the smartphone market.

Samsung said in the statement: “Although the revenue and operating profit in the fourth quarter fell a quarter of the quarter (QOQ), the annual revenue reached the second highest in the record, which only exceeded 2022 in 2022.”

Samsung reported KRW's $ 309 trillion in revenue for a whole year, while KRW's operating profit of 32.7 trillion kreates. In 2023, the company's annual revenue was 25.894 trillion yuan, and its operating profit was 6.57 trillion.

Samsung said that due to its weak semiconductor business, the income may be limited, but it will pursue growth through AI smartphones and other advanced devices.

It added: “In 2025, the company plans to enhance AI's technology and product advantages, continue to meet the future needs of high -value products, and promote sales growth in the high -end market segment.”

Samsung's stock price fell 2.2 % in South Korea on Friday morning, while SK Hynix stocks fell 11 % because the Korean market resumed transactions after four days of rest. Professionals of Asia Technology are facing the latest artificial intelligence models from DeepSeek, China, which may subvert the AI ​​ecosystem of the United States.

Samsung's electronic chip business in the fourth quarter was 2.9 trillion, a decrease of 25 % from the three months as of October, and its year was lower than SK Hynix.

Although Samsung's memory business has achieved a record of 3.01 trillion yuan in the fourth quarter of the record, it is helpful for the demand for high -grade storage products used in AI applications.

Samsung said: “(O) Compared with the previous quarter, due to the increase in R & D expenses to ensure future technical leadership and the initial increase in costs to ensure the production capacity cutting -edge nodes, it has reduced profits.”

Both Samsung and SK Hynix provide DRAM or dynamic random access to memory, and the product-data processing required for a semiconductor memory.

However, SK Hynix has left Samsung in HBM or high -bandwidth memory (a DRAM), of which the chip is vertically stacked to save space and reduce power consumption. HBM products have seen booming demand in the use of high -performance computing applications (such as AI).

Eric Ross, an analyst at Cascend Securities, said on Friday's “Squawk Box Asia” on Friday: “They lost their shares in the high bandwidth DRAM business.

He pointed out that Dram Maker Micron, the United States, also obtained the foundation in the company.

He said: “Samsung is currently in the wrong part of the DRAM market because they missed high bandwidth works, and they really need to catch up with this.” He added that the PC and smartphone DRAM markets are under price pressure.

According to Samsung, its memory business is cutting old products to better consistent with market demand and increase its proportion of high -value -added products (such as HBM).

Samsung said: “In 2025, the overall memory market demand in the second quarter is expected to resume from the second quarter.

Samsung's mobile experience and network business, its task is to develop and sell smartphones, tablet computers, wearable devices and other equipment, and the sales and profits of the report will decrease by a quarter.

Samsung said that part of the performance is due to the fading effect of the new flagship smartphone model.

The consolidated income of the department was KRW 25.8 trillion, and its operating profit in the fourth quarter was 2.1 trillion.

Samsung said: “However, on the basis of the year, flagship sales have grown behind the double -digit growth of the Galaxy S24 series with Galaxy AI, and its value and wearable equipment for goods have also increased.”

In this quarter, Samsung plans to promote sales growth through the new flagship model (especially its newly launched Galaxy S25 series) and will continue to push to the AI ​​smartphone market.

Nabila Popal, the senior director of the IDC data and analysis team, told CNBC's “Squawk Box Assia”, “Samsung is doing, and it has performed well in the past few years, which is more focused on value and flagship equipment.” Friday.

She added that, in view of this focus, Samsung's share in the high market has been close to the leader of Apple's leader Apple.