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Samsung’s Q4 Earnings Miss Expectations Amid Mounting Chip Challenges

by THEFUTURE.TEAM

January 11, 2025

Samsung Electronics reported a disappointing preliminary operating profit for the fourth quarter of 2024, falling significantly short of market estimates. The South Korean tech giant’s struggles to ramp up advanced chip production for Nvidia, coupled with sluggish demand for traditional memory chips, took a toll on its earnings.

The company expects an operating profit of 6.5 trillion won ($4.5 billion) for the quarter, well below analysts’ SmartEstimate of 7.7 trillion won. While the figure represents a 131% increase compared to the same period last year, it is a sharp 29% drop from the prior quarter. Preliminary revenue came in at 75 trillion won, slightly under expectations.

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Chip Woes Weigh Heavily

Samsung’s focus on manufacturing high-bandwidth memory (HBM) chips for Nvidia’s artificial intelligence GPUs has proven costly. Nvidia CEO Jensen Huang recently acknowledged the company’s efforts, stating that Samsung needs to “engineer a new design” to meet Nvidia’s requirements, but he expressed confidence in their progress.

Rising research and development expenses and underutilised factory capacities in the logic chip division further dragged profits. Analysts estimate losses in this segment may have widened to $1.5 billion during the quarter, up from $960 million in Q3.

Market Rivalry Intensifies

As Samsung struggled, rival SK Hynix—Nvidia’s main HBM chip supplier—reported strong performance and record earnings, with its stock surging 23% last year. Samsung’s own shares dropped 32% over the same period, significantly underperforming South Korea’s broader market.

Despite these challenges, some analysts believe Samsung’s chip business may have reached its lowest point. “There are concerns about Samsung’s major businesses continuing to lose competitiveness. But chip demand may have bottomed out,” said Lee Min-hee of BNK Investment & Securities.

Device Business Under Pressure

Samsung’s devices division, which includes smartphones, TVs, and appliances, also saw earnings decline due to slower demand and rising competition. Sales of premium foldable smartphones were particularly disappointing.

The division’s struggles were compounded by the South Korean won’s depreciation to a 15-year low, driven by domestic political instability and global trade tensions. While a weaker won typically boosts overseas revenue, it wasn’t enough to offset waning demand.

Looking Ahead

Despite the challenges, Samsung ended the trading session 3.4% higher, as investors viewed the weak results as already priced into the stock. With detailed Q4 results expected on January 31, analysts will be closely watching for updates on Samsung’s progress in advanced chip manufacturing and recovery in its mobile and device businesses.

The tech giant faces a pivotal moment as it navigates intensifying competition, rising costs, and shifting market dynamics in the global semiconductor industry.

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EU Farm Output Prices Decline For The First Time In Nine Months

by THEFUTURE.TEAM

March 12, 2026

EU Market Adjustments Signal New Price Trends

Agricultural output prices across the European Union declined in the fourth quarter of 2025, marking a shift after several quarters of increases. Data from Eurostat shows that farm gate prices fell by 1.9% compared with the same period in 2024.

Crisis of Declining Prices In Select Markets

Cyprus recorded one of the more notable decreases in agricultural input costs among EU member states, with prices falling by 2.6% compared with Q4 2024. The reduction eased cost pressures for the local agricultural sector following periods of higher prices earlier in 2025. Across the EU, prices for goods and services consumed in agriculture remained relatively stable. Non-investment inputs such as energy, fertilisers and feedingstuffs showed limited overall changes during the quarter.

Country-Specific Divergence In Price Movements

Eurostat data highlights considerable variation across member states. Fifteen EU countries recorded declines in agricultural output prices. Belgium registered the largest decrease at 12.9%, followed by Lithuania (8.2%) and Germany (6.0%). At the same time, twelve countries reported increases in output prices. Ireland recorded the strongest rise at 6.8%, followed by Slovenia (5.6%) and Malta (4.2%).

Stability In Agricultural Inputs Amid Commodity Shifts

Agricultural input prices also showed mixed developments. Eleven member states recorded declines, including Cyprus (2.6%), Belgium (2.1%) and Sweden (2.0%). Other countries experienced moderate increases, including Lithuania (4.2%), Ireland (3.3%) and Romania (2.5%). Among major agricultural commodities, milk prices declined by 4.1% while cereal prices fell by 8.9% across the EU. In contrast, fertilisers and soil improvers increased by 7.9%, reflecting continued volatility in input markets.

Outlook For EU Agriculture

The latest Eurostat data points to uneven price developments across the EU agricultural sector. While input prices remained broadly stable in many markets, movements in output prices varied significantly between member states. These trends highlight the need for farmers and policymakers to adapt to shifting commodity prices and changing cost structures across the European agricultural market.