Samsung Electronics saw its operating profit decline in the third quarter despite higher revenue, as the world’s largest memory chipmaker increased spending on artificial intelligence development and faced currency pressures.
Operating profit dropped to 9.18 trillion won ($6.8 billion) while revenue rose 7% from the previous quarter to 79.1 trillion won ($58.6 billion), driven by new smartphone launches and premium memory chip sales. The Korean tech giant took a 500 billion won hit from the strengthening local currency against the dollar.
The company’s memory chip unit posted 3.86 trillion won in operating profit as it ramped up production of high-bandwidth memory for AI applications. However, mobile chip demand remained soft due to inventory adjustments by some customers.
Samsung’s mobile division recorded growth in both revenue and profit margins following new product launches. The company expects double-digit annual growth in flagship phone sales despite rising material costs.
Looking ahead, Samsung projects robust AI-related demand while warning of potential weakness in traditional memory markets. The firm plans to expand production of advanced chips and boost investment in AI features across its product range.
The display unit delivered improved earnings on major customer launches but maintained a conservative outlook due to rising competition among panel makers.
