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Source: Samsung Electronics

Seoul, South Korea - Samsung Electronics (KRX: 005930) today reported its third-quarter results, showing a 12% increase in revenue but a 31% decrease in operating profit compared to the same quarter last year. 

The Key Points

  • The company saw strong performance in its mobile and display businesses but continued weakness in its memory semiconductor business.
  • Slow memory demand led to inventory adjustments and delayed data center growth. The memory business posted operating losses three times higher than a year ago. Samsung expects a gradual recovery in 2024, driven by AI and smartphone replacement purchases.
  • The semiconductor manufacturing business underperformed but set a new record for design wins focused on high-performance computing. Samsung aims to accelerate growth by increasing the production of cutting-edge 3nm and 4nm chip processes.
  • Profits from mobile OLED panels increased significantly due to robust sales of new foldable smartphones. Samsung plans to maintain its focus on premium mobile displays while expanding into emerging categories such as AR and VR.
  • The mobile device business improved profitability, led by sales of flagship smartphones, including new foldable and S23 models. Samsung plans to capitalize on seasonal demand in the fourth quarter across phones, tablets, and wearables.

What's Next?

While macroeconomic uncertainty remains, Samsung expects memory demand to recover in 2024. 

The company emphasizes continued strategic investments in manufacturing capacity and advanced technologies, including AI and XR. 

However, near-term financial results may remain uneven amid changing market conditions. 

The market will monitor Samsung's capacity expansion in advanced chip manufacturing and cost control efforts to restore profitable growth.