Samsung on Thursday warned of a small mobile business advantage as its rival Apple gave a positive iPhone sales outlook,
in the hope that the new models would help the world's largest smartphone vendor finally get back on the development track.
Investors have expressed their hopes for a recovery in the mobile business that once made up more than half of Samsung's profits, as its chip operations were sluggish due to oversupply and weak global demand.
Strong sales of the Galaxy Note 10 smartphone helped the South Korean firm report its best mobile business gains in six quarters in the three months ended in September as it recovered from the battery explosion scandal in late 2016 that hurt sales is.
The mobile business reported a 32% increase in operating profit, winning 2.9 trillion ($ 2.5 billion) in the third quarter, the highest since the first quarter of 2018.
But Samsung warned that mobile earnings would decline in the fourth quarter as marketing costs would increase and sales of the flagship model would soften from peaks after launch.
Apple said holiday-quarter sales in the coming hours after the holiday would beat Wall Street's expectations, citing demand for services, wearables and its latest iPhones.
A song from "My Investment and Securities" My Song said, "The new smartphone is likely to be impacted in the fourth quarter, as people are not getting Samsung's new Note model, which came out several months ago." .
"This will cause a drop in shipments and ultimately lower profits."
Samsung's vice president of mobile communications business Lee Jong-min told of the earnings call that mobile was on the decline.
iod, demand is expected to continue to decline year-on-year due to persistent uncertainties in the global macro environment," he said.
Samsung is betting on growth in the markets for 5G and foldable phones next year.
Just this week it unveiled a design for a phone that could turn into a class, hinting at its next innovation in the foldable segment.
According to Strategy Analytics, Samsung's smartphone shipments grew 8% to 78.2 million phones in the third quarter, a 3% drop in Apple's iPhone sales.
Analysts say that Samsung's smartphone sales were boosted by US restrictions on Huawei, which hurt the Chinese firm's mobile business in the global market.
Chip recovery
Contrary to its caution on the mobile sector, Samsung said that chip sales should receive positive signals for demand from data center customers and 5G smartphone manufacturers next year.
The world's largest memory chipmaker said its September-quarter operating profit fell 56% to $ 7.8 trillion ($ 6.7 billion),
slightly higher than the company's previously released estimate of $ 7.7 trillion. Revenue won 5.3 percent to 62 trillion won, in line with earlier estimates.
The semiconductor business - Samsung's main source of income so far - reported operating profit of 3.1 trillion, lower than the same period last year, and less than a quarter of global demand for electronics.
Analysts say Samsung's profits have declined for four consecutive quarters and are expected to decline again in the current quarter.
"Global 5G smartphone sales will be in full swing next year, supporting solid memory-chip demand growth," analyst Park Sung soon said at Cape Investment & Securities.
Samsung cautioned that in 2020, semiconductor sales prospects were replaced with uncertainty in the macroeconomic environment, a potential reference for the future of the US-China trade relationship.
The Samsung market gained 1.8% vs. 1% in the broader market as of 0403 GMT.
in the hope that the new models would help the world's largest smartphone vendor finally get back on the development track.
Investors have expressed their hopes for a recovery in the mobile business that once made up more than half of Samsung's profits, as its chip operations were sluggish due to oversupply and weak global demand.
Strong sales of the Galaxy Note 10 smartphone helped the South Korean firm report its best mobile business gains in six quarters in the three months ended in September as it recovered from the battery explosion scandal in late 2016 that hurt sales is.
Samsung Galaxy Note 10 Propel Company
The mobile business reported a 32% increase in operating profit, winning 2.9 trillion ($ 2.5 billion) in the third quarter, the highest since the first quarter of 2018.
But Samsung warned that mobile earnings would decline in the fourth quarter as marketing costs would increase and sales of the flagship model would soften from peaks after launch.
Apple said holiday-quarter sales in the coming hours after the holiday would beat Wall Street's expectations, citing demand for services, wearables and its latest iPhones.
A song from "My Investment and Securities" My Song said, "The new smartphone is likely to be impacted in the fourth quarter, as people are not getting Samsung's new Note model, which came out several months ago." .
"This will cause a drop in shipments and ultimately lower profits."
Samsung's vice president of mobile communications business Lee Jong-min told of the earnings call that mobile was on the decline.
iod, demand is expected to continue to decline year-on-year due to persistent uncertainties in the global macro environment," he said.
Samsung is betting on growth in the markets for 5G and foldable phones next year.
Just this week it unveiled a design for a phone that could turn into a class, hinting at its next innovation in the foldable segment.
According to Strategy Analytics, Samsung's smartphone shipments grew 8% to 78.2 million phones in the third quarter, a 3% drop in Apple's iPhone sales.
Analysts say that Samsung's smartphone sales were boosted by US restrictions on Huawei, which hurt the Chinese firm's mobile business in the global market.
Chip recovery
Contrary to its caution on the mobile sector, Samsung said that chip sales should receive positive signals for demand from data center customers and 5G smartphone manufacturers next year.
The world's largest memory chipmaker said its September-quarter operating profit fell 56% to $ 7.8 trillion ($ 6.7 billion),
slightly higher than the company's previously released estimate of $ 7.7 trillion. Revenue won 5.3 percent to 62 trillion won, in line with earlier estimates.
The semiconductor business - Samsung's main source of income so far - reported operating profit of 3.1 trillion, lower than the same period last year, and less than a quarter of global demand for electronics.
Analysts say Samsung's profits have declined for four consecutive quarters and are expected to decline again in the current quarter.
"Global 5G smartphone sales will be in full swing next year, supporting solid memory-chip demand growth," analyst Park Sung soon said at Cape Investment & Securities.
Samsung cautioned that in 2020, semiconductor sales prospects were replaced with uncertainty in the macroeconomic environment, a potential reference for the future of the US-China trade relationship.
The Samsung market gained 1.8% vs. 1% in the broader market as of 0403 GMT.
Samsung Galaxy Note 10 Propel Company 2020
Reviewed by Codest BD
on
November 05, 2019
Rating:
Reviewed by Codest BD
on
November 05, 2019
Rating:
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