Samsung issues public apology for poor performance, promises to innovate in future | Tech Tips

In July this year, Samsung launched the Samsung Galaxy Z Fold 6 and Galaxy Z Flip 6 alongside other products, which garnered a lot of traction globally. However, it has issued an apology after announcing it expects to report $6.78 billion in operating profit for the most recent quarter, which is around $900 million below what analysts had projected, as it faces challenges in the AI chip market. The apology includes strong commitments and acknowledges its recent failure to innovate.

Samsung public apology

Jun Young-Hyun, the Vice Chairman and Head of Samsung Electronics’ Device Solutions (DS) Division, issued the apology on the company’s Korean newsroom after lower-than-expected third-quarter profit guidance.

The South Korean tech giant estimated its operating profit for the quarter ending in September to be around 9.10 trillion won, missing the 11.456 trillion won ($7.7 billion) expected by analysts surveyed by LSEG.

The company reported that its memory division’s performance declined due to “one-time costs and negative impacts.” These factors included inventory adjustments by mobile clients and an increased supply of older products from Chinese memory manufacturers.

However, Samsung notes that it will transform its current challenges into opportunities by concentrating on innovation and restoring its core technological strengths. Samsung highlighted the need to maintain high standards in technology and quality while avoiding short-term solutions in favour of building long-term competitiveness.

Here’s a part of the apology letter written by the company official (via The Verge):

“Samsung has a history of challenge, innovation, and overcoming that has always turned crises into opportunities. We will definitely make the serious situation we are currently facing into an opportunity for a leap forward. Our management will take the lead in overcoming the crisis. Above all, we will restore the fundamental competitiveness of technology. Technology and quality are our lifeblood. It is Samsung Electronics’ pride that we can never compromise on. Rather than short-term solutions, we will secure fundamental competitiveness,” the official said.

“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. Second, we will prepare for the future more thoroughly. We will rekindle our unique passion to fearlessly pioneer the future and cling to our goals until the end and achieve them. We will re-arm ourselves with a challenging spirit to run toward a higher goal rather than a defensive mindset to protect what we have,” he added.

It is worth noting that the tech giant’s apology letter comes about a week after it hinted at plans to reduce staff in some of its operations in Asia.

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