Samsung apologizes for bad financial performance
- Reference: 1728362302
- News link: https://www.theregister.co.uk/2024/10/08/samsung_q3_2024_apology/
- Source link:
"The performance that fell short of market expectations has raised concerns about the fundamental technological competitiveness and the future of the company," [1]wrote vice chairman Jeon Young-hyun, who runs the Korean giant's chip business.
"All of this responsibility lies with us who are leading the business," added Jeon.
[2]
The vice chairman claimed he was confident things will improve and outlined three strategies for making it happen. They include a focus on long-term advancements rather than short-term fixes, rekindling passion for innovation, and re-examining organizational culture to allow for more open communication.
[3]
[4]
"I believe that only new technologies that do not exist in the world and perfect quality competitiveness are the only ways for Samsung Electronics to make a comeback," declared Jeon, in a rare mea culpa.
[5]SK hynix begins mass production of 36 GB 12-layer HBM3E
[6]Samsung chairman debunks foundry, chip biz spinoff rumors
[7]Samsung fined just $8K for exposing chip fab workers to X-ray radiation
[8]Samsung faces strikes in India, amid reports of global layoffs
Samsung Electronics preliminary Q3 2024 results, [9]posted the same day as the apology, reported consolidated profit of ₩9.1 trillion ($6.8 billion).
Although that number represents an almost 275 percent increase year-on-year, it missed expectations of profit topping ₩10 trillion ($7.4 billion).
Consolidated sales came in at ₩79 trillion ($58.6 billion) – an increase of 17.2 percent year-on-year.
[10]
Full results will be released October 31.
Official said Samsung’s memory business was a problem in the quarter, with one-off cost increases and undefined “negative effects” hampering performance.
In an interview with Reuters, Lee boasted Samsung was "hungry to grow the business."
[11]
That’s a nice sentiment, but growth should not be hard as Samsung is the world’s leading memory-maker at a time when demand for the stuff is surging thanks to enthusiasm for AI. But Samsung faces intense pressure to deliver high-bandwidth memory (HBM) chips to fuel AI. Yet late last month, fellow Korean chipmaker SK hynix became the first manufacturer to [12]mass produce 36GB 12-layer HBM3E chips.
The poor results came a day after Samsung chairman Jay Y Lee [13]denied rumors that the company would spin off its foundry business or chip design operation, amid reports of widespread layoffs, and as industrial has troubled its operations in [14]India and [15]South Korea . ®
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[1] https://news.samsung.com/kr/%ea%b3%a0%ea%b0%9d%ea%b3%bc-%ed%88%ac%ec%9e%90%ec%9e%90-%ea%b7%b8%eb%a6%ac%ea%b3%a0-%ec%9e%84%ec%a7%81%ec%9b%90-%ec%97%ac%eb%9f%ac%eb%b6%84%ea%bb%98-%eb%a7%90%ec%94%80%eb%93%9c%eb%a6%bd%eb%8b%88
[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2ZwUCxtJudNbAEDmQc2zvdgAAAA0&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZwUCxtJudNbAEDmQc2zvdgAAAA0&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33ZwUCxtJudNbAEDmQc2zvdgAAAA0&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[5] https://www.theregister.com/2024/09/26/sk_hynix_hbm3e_production/
[6] https://www.theregister.com/2024/10/07/samsung_foundry_spin/
[7] https://www.theregister.com/2024/09/26/samsung_fined_chip_fab_radiation/
[8] https://www.theregister.com/2024/09/12/samsung_india_strikes/
[9] https://news.samsung.com/global/samsung-electronics-announces-earnings-guidance-for-third-quarter-2024
[10] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZwUCxtJudNbAEDmQc2zvdgAAAA0&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[11] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33ZwUCxtJudNbAEDmQc2zvdgAAAA0&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[12] https://www.theregister.com/2024/09/26/sk_hynix_hbm3e_production/
[13] https://www.theregister.com/2024/10/07/samsung_foundry_spin/
[14] https://www.theregister.com/2024/09/12/samsung_india_strikes/
[15] https://www.theregister.com/2024/08/06/samsung_union_rto/
[16] https://whitepapers.theregister.com/
> low margins
Would not someone think of lost jobs?
Design Choices
Samsung is a diversified business, but based on their home appliance design choices, I would not buy one from them. Housesitting for some friends, I found I could not use the Samsung stove/oven's oven, because it had only keypad/computer controls -- which had failed (error code "C-F2"). The burners still worked, because they had manually-activated dials.
MY oven was installed in the 1970s, and still works fine. It has a simple mechanical timer. If the built-in timer fails, I can use my simple, wind-up kitchen timer, and turn the oven on and off myself, and cook my meal.
I hate systems in which the slightest failure DoSes you out of major functionality.
Re: Design Choices
Whereas we went with them specifically for that reason (design)
A double oven that has a split door so it can work as two single ovens, a microwave combo that looks the same, but besides a microwave has oven (Inc fan) and grill
I do get the sentiment with many new products Vs older ones
Nowadays I am intentionally buying devices without connectivity, especially if getting them from China. My hope is they could not be bricked, used for spying, or be set on fire via Wi-Fi.
(Nothing personal about good or hard working people of China, just geopolitics and reading El Reg).
Re: Design Choices
A few years back, I had a company-issued Samsung mobile phone which refused to hard delete the Facebook app. This set my policy on buying Samsung products.
Re: Design Choices
You can't delete pre-installed apps on any make of android phone, but the customised ui on some might pretend it has.
"an apology to customers"?
I prefer the manufacturers of my consumer electronics to have low margins. That way I know the value's in my pocket and not some shareholder's.