**Tech Giant Samsung Issues Rare Apology Amid Profit Warning**
Samsung Electronics, the world’s largest memory chipmaker, has issued a rare apology after warning of weaker-than-expected third-quarter profits. The South Korean tech giant’s preliminary estimate for Q3 operating profit stands at 9.1 trillion won ($6.74 billion), a 12.8% decline from the previous quarter. Sales are expected to rise 6.7% sequentially to 79 trillion won ($58.57 billion).
The company cited inventory adjustments by mobile customers, increased supply of legacy products from Chinese memory companies, and one-off expenses as contributing factors to the disappointing performance. Additionally, the delivery of high-bandwidth memory (HBM) chips to a major customer was delayed.
Samsung’s struggles in the artificial intelligence chip race have allowed rivals SK hynix and Micron Technology to gain ground. SK hynix has made significant strides in HBM3E development, recently beginning mass production of the world’s first 12-layer HBM3E product with the largest capacity of existing HBM.
Jun Young-hyun, head of Samsung’s device solutions, took full responsibility for the disappointing performance, acknowledging concerns about the company’s fundamental technological competitiveness and future prospects. Samsung has pledged to restore its competitiveness, prepare for the future more thoroughly, and address organizational culture issues.
The company will report its financial results on October 31. Meanwhile, other market news includes expectations for Tesla’s ‘We, Robot’ being priced in, GEICO denying withdrawal of Tesla Cybertruck coverage, and Stellantis filing additional lawsuits against labor unions.
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