Samsung has apologized for its poor performance in the tech crisis

Samsung Electronics has apologized and admitted it faces a "crisis" in its technological competitiveness, which was reflected in a disappointing profit forecast despite the global boom in artificial intelligence.

Samsung expects third-quarter profit to rise to 9.1 trillion won ($6.8 billion), up 274.5 percent from a year earlier, but missed market expectations as the company struggles to capitalizes on the high demand for chips used in AI servers.

"Today, we, the management of Samsung Electronics, would like to first apologize to you," said a statement signed by Jun Yong-hyun, vice president of the device solutions division.

The position said that "the results have raised concerns about our fundamental technological competitiveness and the future of the company."

"Our leadership will take the initiative to overcome the crisis... We will turn the serious situation we are currently facing into an opportunity for revival," Yong-hyun added.

The results increased about three times compared to the same period last year, but decreased by nearly 13% compared to the previous quarter.

The apology came about a week after the tech giant said it intended to cut staff at some of its Asian divisions, describing the move as "routine workforce adjustments."

Bloomberg reported that the layoffs could affect about 10 percent of the workforce in those markets, while other reports said the planned move could affect up to 30 percent of employees outside of South Korea. | BGNES, AFP