Samsung Electronics posted its earnings estimate for Q3 2024 and revealed profit will be 10% less than previously expected. The major reason is an unexpected delay in the AI chip business from an unnamed major customer, but the company didn't elaborate further.

Samsung revealed that earnings in the mobile division improved from the preceding quarter, which is the period that saw the launch of Galaxy Z Fold6 and Galaxy Z Flip6 foldables. The display division also saw an increase as Apple launched its iPhones, most of which are with Samsung panels.

Reuters quoted several analysts who also do not see earnings improving in this quarter. Samsung still is behind SK Hynix, as its fellow South Korean competitor is increasing sales in HBM chips (high-bandwidth memory), the main chips used for AI processing.

Samsung's late response to the new fad in technology has forced the company to rely on traditional, lower-margin chips. This market is already slowly being infiltrated by competition from China as demand slows down.