Samsung Electronics forecasts 9.1 trillion won in Q3 profit, fails to meet market estimates

Samsung Electronics is expected to log 9.1 trillion won ($6.8 billion) in profit for the third quarter, failing to meet market expectation as the Korean chip giant could not find a breakthrough in the highly competitive AI chip market. 
 
The tech behemoth, in a preliminary earnings announced Tuesday, said it third-quarter operating profit is expected at 9.1 trillion won, a 274.5 percent year-on-year jump. It hovered below market estimation of 10.8 trillion won, according to data compilation by the FnGuide. 
 
Its revenue posted 79 trillion won during July-September period which is a 17.21 percent jump compared to the year before. That also fell below market estimation of 80.9 trillion won. 
 
Samsung Electronics' worse-than-expectation earnings largely derives from slow recovery in the chip sector, according to local analysts. 
 
The preliminary earnings doesn't provide breakdown per sector, but its Device Solutions division, in charge of chip business, is forecast to have logged operating profit in 5 trillion won range, dipping from the previous quarter's 6.5 trillion won. 
 
Samsung Electronics Vice Chairman Jun Young-hyun, heading the DS division, issued an apology over the disappointing figures. 
 
"Samsung Electronics management would like to make an apology to customers, investors and employees," Jun said in a rare message issued right after the preliminary earnings were announced. 
 
"We will make this rigorous situation into an opportunity to leap again. Most of all, we will recover the fundamental competitiveness in technology."
 
Samsung Electronics shares opened at 60,500 won Tuesday morning, a 0.82 percent drop from the previous trading day.

BY JIN EUN-SOO [jin.eunsoo@joongang.co.kr]