Thursday, October 29, 2015

Interesting about Samsung's Profit Center

It's NOT smartphones -- it's the components & chips it makes and sells to others.

SONY is concentrating on components, and PicoP is very much a component they intend to sell to other OEMS.

Phone Arena

How did they start showing profit and raise estimates? Smartphone sales...? wasn't solely the warmly received Samsung Galaxy S6, S6 edge, Note5, and S6 edge+; or the attractively positioned A-series of upper mid-range handsets that turned its fortunes around.
Rather, it may have been two things, in particular. First, Samsung Electronics reduced the intervals between its high-profile smartphone releases, outing the Galaxy Note5 and Galaxy S6 edge+ a good month before Apple pushed the iPhone 6s and 6s Plus. This strategy may have helped the company preserve its market share by not letting its main smartphone rival whisk attention immediately. 

In this line of thought, analysts expect an unusually early January reveal for Samsung's next flagship smartphone, the Galaxy S7. It is said that suppliers will begin mass-producing components for the device this December. In addition, Samsung Pay, the company's mobile payments system, will back a strategy of attracting and locking in users to its devices. The system is operational in South Korea and America, with users in Korea numbering 1 million.

Second, Samsung Electronics has a huge semiconductor operation whose steady profits make up for the sustained losses in its smartphone business. Analysts note that "solid demand" for memory chips and other semiconductor components used in smartphones, along with "a cyclical upswing" in prices, led to growth that now accounts for half of Samsung Electronics' profits! However, this doesn't mean the semiconductor business is a safe haven, for researchers at Gartner project a 17% revenue decline next year, due to "potential oversupply" in the DRAM memory market. However, Samsung's chipmaking division does have its work cut out for it, having secured Apple and Qualcomm as manufacturing clients for present and upcoming 14nm application processors.

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