Samsung Mobile Division Archives - Gizmochina

Samsung sees record sales and new 3 year high operating profit in Q3 2021

Sean — Thu, 28 Oct 2021 11:14:07 +0000

Earlier today (28th October 2021), Samsung Electronics have revealed its financial report for the third quarter of this year, which showcased its strong performance especially with its semiconductor business booming.

In the period between July and September, the South Korean tech giant’s net profits rose by a sizeable 31.3 percent, with the brand’s profits reaching 12.29 trillion won (roughly 10.5 billion US Dollars. The brand shared the financial figures on a regulatory filing that also showcased its operating profits rising by 28 percent in the third quarter, reaching 15.82 trillion won (roughly 13.5 billion US Dollars). Notably, the operating profit was also the largest ever since the third quarter of 2018.

During this same period, the world’s largest smartphone maker’s sales also hit a quarterly record of 73.98 trillion won (roughly 63.2 billion US Dollars). Similarly, Samsung’s operating profits were also up by 26 percent from the previous quarter, with its sales also surging by 10 percent. According to TheKoreanHerald, the primary factor that enabled the company’s strong performance was its chip unit that saw robust growth amid rising memory chip prices, improving yield rates, and higher profitability at its contract based chipmaking business.

Furthermore, its mobile business also saw gains thanks to the launch of its latest generation of foldable smartphones, namely the Galaxy Z Fold3 and Galaxy Z Flip3. While the company saw growth in various segments, certain areas might see a slowdown in the following quarter. Reports have surfaced that point at DRAM/memory chips pricing expected to fall by around 15 to 20 percent in the fourth quarter.

Samsung Mobile Head visited US twice to secure more chips: Report

Sean — Tue, 28 Sep 2021 08:41:46 +0000

The Samsung Mobile division’s President and Head TH Roh has apparently made two visits to the US within this year. The executive made the trips to secure more chipsets/mobile application processors that is required for smartphone production.

According to TheElec, Roh met with major component makers in the US to secure a more chips and asked major partners to supply the South Korean tech giant. However, the official was reportedly denied, as per sources close to the matter. The first trip was made back in March while the last one was in July. The source further added that the President of Samsung Mobile division visited a global application processor maker in July and asked for more chips, but was refused outright.

The component maker had told the President that they wished to increase overall supply as well, but couldn’t increase the supply to Samsung along as of right now. Notably, Roh was also accompanied by the Vice President who remained in the US and returned to South Korea after staying for about three months. A company spokesperson stated that their trip was not without any results and they did result in the brand being able to secure some volume.

Although, the failure to secure more chips is indicative of the ongoing global shortage of semiconductors that has affected various industries across the globe. This includes the consumer electronics and even the automobile industry. At the moment, smartphone production has been negatively affected due to supply constraints in the third quarter of this year, which is also expected to continue in the fourth quarter as well.

Samsung reviews smartphone business as Xiaomi leads global market: Report

Sean — Fri, 06 Aug 2021 11:39:20 +0000

The mobile division of Samsung is apparently facing issues as the company has begun a management review of its smartphone business. The news arrives amid Xiaomi‘s lead in the smartphone market.

According to TheElec report, the South Korean tech giant is conducting a “special review.” What makes this different from standard reviews is that it can occur without any warning when a particular division starts facing business challenges. Notably, this smartphone business review could possibly even turn into an audit depending on its results. While Samsung has maintained its top spot in the global smartphone market in Q2 2021, sales in this period has declined compared to the previous quarter.

Furthermore, the report also suggested that the latest Galaxy S21 series is not hitting sales targets as well. The situation is further worsened by the ongoing shortage of semiconductors and chipsets that has affected various industries across the globe. This has even caused Samsung to see a decline in 5G sales as well. The brand also falls behind Apple and Chinese OEMs like Oppo and Vivo in terms of 5G sales.

Interestingly, the report arrives as Xiaomi is seeing robust growth in the global smartphone market. The Chinese brand became the world’s largest smartphone maker in terms of sales in June 2021, while it took the second spot in the Q2 2021. Although, Samsung is expected to see a surge in sales after its upcoming smartphone launches. This month, the Galaxy Unpacked event would also have announcements for various new products, which includes new foldable phones.

Samsung sales decline due to Apple, but is hopeful with its cheap foldable and 5G Galaxy devices

Sean — Thu, 28 Jan 2021 10:44:00 +0000

The mobile division of Samsung didn’t witness a very impressive final quarter last year, which was within expectations. The company faced “intensified competition in the year-end season,” as per its recent earnings report.

During Q4 2020, the company saw a decline of 11 percent year on year when compared to its performance in 2019. The “intense” competition here likely points to Apple and its iPhone 12 series, which stole the show during the fourth quarter of 2020. While the iPhone 12 lineup faced a delay in launch and even faced a staggered release for a couple of its models, the company managed to stretch its early buyer’s phase till the month of December, as per a PhoneArena report.

Due to the pent up market demand for new an iPhone upgrade, Apple saw a significant rise in iPhone shipments during this period, with its iPhone sales also surging by 17 percent year on year. This resulted in the company drawing in a revenue of 111 billion US Dollars out of which near 29 billion US Dollars was the operating profit. The lack of any new Galaxy handsets to compete with and a rise in marketing costs during the holiday season led the Samsung mobile division to only see a modest performance during this time.

While the company’s display division managed to see great sales due to it supplying the iPhone OLED screens, its memory and chip sales saw a decline as well, with the company only bringing in about 6 billion US Dollars in net profit. Despite the lackluster performance in the final quarter of 2020, Samsung is optimistic about 2021 and it’s first few months, unlike Apple.

The former is expecting better performance thanks to its strong 5G enabled Galaxy handsets portfolio along with its cheap foldable lineup as well. As per official Samsung notes, the company will “strengthen leadership in our flagship lineup by expanding S21 sales and popularizing the foldable category… [and] increase smartphone sales by fully addressing replacement demand for 5G with mass-market 5G models.”

Samsung mobile division is in “crisis,” reveals an internal report

Simranpal Singh — Wed, 21 Nov 2018 04:25:25 +0000

Samsung’s mobile division seems to be in “crisis”, as revealed a new report from The Korea Herald. Samsung mobile division’s CEO DJ Koh apparently made a comment in the internal messages to the employees, colleagues about the current condition of the division. Koh added that they are eyeing for the next year’s flagship devices to do some magic.

Particularly, DJ Koh said that Samsung mobile division is struggling to maintain its position. He further added that he will do his best to save the company from going into the crisis. Samsung mobile division has now pulled up everything for the upcoming flagship devices like Galaxy S10 and the new foldable device. They are looking for good sales from both these devices in the upcoming year.

Samsung is already facing tough competition in different markets from Chinese OEMs. Even, if we talk about some big markets than manufacturers like Huawei, Xiaomi, Vivo, and Oppo are churning the Korean giant’s market share. They are offering better specs and software at a much affordable price. Reeling under the pressure from the new players in the market, Samsung Q3 2018 profit went down to ~$399 million compared to Q2 2018’s 2.67 trillion won. It is not a huge drop, but it affects the overall value of the company.

Despite all these hurdles, Samsung has still remained the number one global smartphone brand around the globe. Well, the picture looks quite clear and good from outside, but within the company, things are different.

Now, the Korean giant is looking for its foldable smartphone sales to overcome the decline in profits. Even, Galaxy S10 is also expected to boast some extraordinary features this time to give some tough time for its competitors. Right now, the guns are on an entirely new product line, a foldable smartphone which is going to be available by early next year. It is the only device which could boost Samsung mobile division’s depleting monetary stocks.

The Korean giant will soon do some organizational shuffling, in order to increase the overall productivity of the firm.

Read More: Samsung’s foldable phone 3D renders reveals its marvelous appeal

Right now, it is quite difficult to predict whether the Galaxy S10 will gain momentum or not? or its foldable device will garner good acceptance? Clouds are hovering over the Samsung’s Mobile division, but we are sure that they will overcome it soon.

What are your views about this whole scenario? Share your thoughts via comments below.

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