Samsung Electronics reported a mixed financial performance for the fourth quarter of 2024, with its operating profit increasing 129.85% year-on-year to 6.5 trillion won ($4.48 billion), but declining 29% from the previous quarter. The company attributed the quarterly decline to weak demand for IT products and increased expenditures, including research and development. Despite the annual growth, Samsung's semiconductor division underperformed, with an operating profit of 2.9 trillion won, falling short of market expectations. This was due to a slowdown in the memory chip market, particularly in demand for chips used in PCs and mobile devices, and intensified competition from low-cost Chinese products. Samsung also warned of limited earnings growth in the first quarter of 2025 due to ongoing challenges in its semiconductor business. The company is planning to launch an improved version of its high-bandwidth memory (HBM) chips, HBM3E, in the first quarter, amid struggles to meet the requirements of key client Nvidia. Additionally, Samsung's mobile division saw a decline in operating profit to 2.1 trillion won, impacted by reduced demand for smartphones and increased competition.