Samsung closed the most profitable quarter in the history of a technology company: 107.4 trillion won in operating profit, about $80 billion. Almost everything comes from selling memory for AI. And he loses almost everything.
Why is it important?. Memory is so expensive that Samsung makes a fortune making it and loses money putting it in its own products. Cell phones, televisions and home appliances lost $600 million in the quarter. A year ago, the same segment earned about 2.6 billion.
It’s not, in any case, “what AI gives you, AI takes away.” The gains made are brutal and more than compensate. But lost the device business unit, Device Experience (DX).
contrast:
- Chips: About $79.4 billion in operating profit, 99% of the total.
- Memories: Sales of about $104.9 billion, five times higher than a year ago.
- Everything else: Lal mobile phone and network lost about 450 million dollars. Televisions and appliances, about 150 million.
between the lines. Note what Samsung itself said in its results: server demand has driven up memory prices for all kinds of products, including smartphones. The mobile division posted higher sales for the new folding unit, but lower earnings for the year due to costs.
And then there are the plans for 2027. Samsung’s goal for the Galaxy is to minimize the decline in profits. Not a word about growing up. Just the cushion.
Yes, but. It should concern the shareholder very little. The stock fell 4.13%, but for other reasons:
- I was expecting a buyback, and Samsung has postponed until late January.
- I expected a horizon similar to SK Hynix, which sees deficits through 2030. Samsung talks about 2028.
Today, Samsung is a memory manufacturer with a business not very relevant (in pure statistics) connected, such as mobile phones.
and what now. The shortage will continue for a long time. Samsung estimates that demand for AI in 2027 will exceed supply this year, and its HBM for next year is already sold out.
While it lasts, the chip segment will continue to charge prices and the mobile segment will continue to pay. Same company on both sides of the counter.
Featured Image | Xataka with the Magnificent
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