Samsung is going through some tough times in the past few months. The company has failed to release its next big update, One UI 7, on time. The brand now plans to roll it out in December, but that too only in beta. Also, the South Korean tech giant is losing its key semiconductor clients. Furthermore, Samsung workers are on strike in major markets. Samsung is quite aware of the crisis and has apologized to its investors for poor performance in Q3 2024.
Samsung is aware of the major crisis it’s going through
Samsung released its earnings guidance for Q3 2024 a few hours ago. The company is expecting to make an operating profit of $6.8 billion or 9.2 trillion Korean won. The brand is around $900 million short of expectations from analysts. However, Samsung is very well concerned with the poor performance in Q3 2024. The company has acknowledged the crisis and has apologized to its investors for the poor performance in the last three months.
“We have caused concerns about our fundamental technological competitiveness and the future of the company due to our performance falling short of the market’s expectations,” reads the statement attributed to Samsung Vice Chairman Jun Young-hyun. “Many people are talking about Samsung’s crisis. We, who are leading the business, are responsible for all of this.”
“Furthermore, 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”, he added.
Samsung delivered poor performance in all technical divisions
Notably, the letter to the investors noted that the company acknowledges it delivered poor performance in all technical divisions. The letter mentions Samsung’s poor performance in its memory, semiconductor, and chipset divisions. Furthermore, the company is looking to secure fundamental competitiveness. It is not seeking any short-term solutions.
The letter notes that the brand is focusing on “new technologies that do not exist in the world and perfect quality competitiveness”. The company is also hoping to better prepare for the future. The brand will “Re-arm [itself] with a challenging spirit to run toward a higher goal”.
That said, it was brave of Samsung to acknowledge its mistakes in the letter to the investors. Let’s hope the company overcomes its failures to better serve its customers, apart from keeping investors happy.
