Samsung loses profits and apologises for the weak competitiveness of its technology
Technology giant Samsung has apologised for the company's crisis situation after saying it expected an operating profit of $6.78bn for the latest quarter, $900m less than analysts' forecasts. The company's vice chairman Jeon Young-hyun admitted that the results raised concerns about the company's technological competitiveness and future.
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Samsung introduced a six-day working week for executives at the beginning of the year due to deteriorating financial performance caused by increased competition and lower demand for chips. The hype surrounding Galaxy AI, as well as Nvidia's future sales of high-speed memory chips, was expected to improve the situation, but a delay in shipments of high-end HBM3E chips to an unnamed major customer has allowed competitors such as SK Hynix to carve out a niche and exacerbate the crisis situation.
The company is also facing pressure from Chinese makers of conventional smartphone chips. Samsung has promised to restore technological competitiveness and improve organisational culture to overcome the current crisis and turn it into growth opportunities.