Samsung Electronics has announced its earnings guidance for the third quarter of 2024, reporting a consolidated operating profit of approximately 9.1 trillion Korean won, equivalent to about $6.78 billion. The company’s total sales are estimated at around 79 trillion Korean won. However, despite these impressive figures, one of Samsung’s top executives has apologised for the company’s performance.
In a blog post, Samsung’s DS Division Vice Chairman, Jeon Young-hyun, addressed customers, investors, and employees, stating, “Today, we, the management of Samsung Electronics, would like to first apologise to you.” He emphasised that the recent performance had raised worries about the company’s technological competitiveness and its future.
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Jeon acknowledged the gravity of the situation, noting, “Many people are talking about Samsung’s crisis. All of this responsibility lies with us who are leading the business.” This admission shows that even a company as successful as Samsung is not immune to challenges.
Jeon reassured, saying, “Samsung has a history of challenge, innovation, and overcoming that has always turned crisis into opportunities.” He reiterated that the management would take the lead in addressing the current challenges.
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The commitment to restoring fundamental technological competitiveness is evident in Jeon’s statement: “We will definitely make the serious situation we are currently facing into an opportunity for a leap forward.” He underscored the importance of technology and quality, referring to them as Samsung’s “lifeblood.”
“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.
Furthermore, Jeon highlighted the need for a cultural shift within the organisation. “We will reexamine our organisational culture and work methods and immediately fix what needs to be fixed,” he noted.
So, what I think is that while Samsung’s third-quarter earnings may seem robust, the company’s leadership is acutely aware of the challenges it faces.