Samsung expected third quarter profit plunged 56 percent or inflection point in 2021
https://www.cnbeta.com/articles/tech/897075.htm Down by Japan and South Korea trade war is one thing.
In fact, every time the rise of a new country from the crisis is not over quite know China's national team can not rise peak occupied chip semiconductor industry from the crisis.
This is the fourth consecutive quarter of Samsung Electronics profit fell. "At present, consumer electronics into the trough once in 30 years, including a direct result of cell phone chips and flash memory chips including the semiconductor industry demand is slow." The first president of Academy of Sun Yan Biao pointed out that the mobile phone industry to the 21st century Business Herald reporter. Samsung's "bitterness" is far from over.
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October 8, Samsung Electronics announced preliminary earnings guidance 2019 third quarter. General guidelines on display, Samsung Electronics third-quarter consolidated between 61 trillion to 63 trillion won in revenue estimated in the range, according to median value is 62 trillion won (US $ 51.806 billion), compared with the second quarter of this year 56.13 trillion won increase of 10.46%, down 5.29% compared with 65.46 trillion won over the same period last year.
Operating profit is expected to be between 7600 to 7800 billion won, according to median value is 7.7 trillion won (US $ 6.434 billion), an increase of 16.67% compared with 6.6 trillion won in the second quarter of this year, compared with the previous of 17.57 trillion won in the same period fell 56.18 percent.
This is the fourth consecutive quarter of Samsung Electronics profit fell. "At present, consumer electronics into the trough once in 30 years, including a direct result of cell phone chips and flash memory chips including the semiconductor industry demand is slow." President of the Academy of Sun Yan Biao first mobile phone sector to the 21st century Business Herald reporter noted, "For Samsung this whole industry chain companies, both involving the display panel, chip, also involves end products, facing an unprecedented downturn in the consumer electronics market, the entire line of business will be subject to different levels of combat. "
Semiconductor sluggish performance
Once the semiconductor business of Samsung Electronics "cash cow", now has become a burden performance.
Samsung Electronics since the third quarter last year, operating profit reached a peak of 14.87 trillion won, its performance has been limited by the slump in the semiconductor industry. The fourth quarter of 2018, Samsung's performance dropped sharply quarter net profit of 8.46 trillion won (US $ 7.6 billion), the chain fell 31%, down 36%. In the first quarter of this year, Samsung Electronics operating profit of 6.23 trillion won, less than 15.64 trillion won last year's four percent, down 60%, compared with 10.8 trillion won the previous quarter also fell 42.3%.
In the second quarter of this year, Samsung Electronics continues to show weak performance, operating profit of 6.6 trillion won (US $ 5.6 billion), down 55.6%. Expected third quarter operating profit of 7.7 trillion won, down 56.18 percent year on year.
The decline in performance in recent quarters due to sluggish performance of the chip market. It is understood that Samsung Electronics 80% of turnover from the semiconductor business, after some analysts believe that Samsung poor performance will continue until the second quarter of this year, until chip prices may slow down before getting better. However, from the latest data, at least in the third quarter, Samsung still did not get rid of the semiconductor chip cycle "quagmire."
"In the consumer electronics industry sluggish environment, various sales-related industries are in decline." Sun Yan Biao said, "We believe that the current trend is not dropping out clear, time or point in 2021."
Samsung also dilemma facing not only the chip cycle, in the long run as well as competitors' incoming. SPACE Chinese University of Hong Kong School of Business Guest Lecturer WU Yi Jie Business Herald reporter to the 21st century that in the past few years, the semiconductor industry by Samsung, Hyundai and Micron three companies oligopoly, while the three companies will be Japanese and European competitors out of the market , to reap huge profits. "But from the beginning two years ago, this monopoly market began to reverse, is a major cause of Chinese enterprises to invest in the semiconductor respect."
However, Sun Yan Biao stressed that, at least in the short term due to Samsung's chip business to get involved in a relatively monopolistic position, and therefore its chip business will fluctuate with the market environment, "the fundamental market position and market structure will not change much. "
In terms of the future, Sun Yan Biao that in the past few years, Samsung is laid out on more high-end chips, but with the development of IoT and 5G, a variety of chip companies, especially in the low-end chip demand to grow exponentially , but the demand for high-end chips and did not show this trend, "Samsung's future may meet market demand, we began to layout the low-end chips to improve the industrial chain."
Foldable mobile phone "bail-out"
Although the semiconductor business is still not out of the periodic adjustment, but Samsung this quarter than analysts forecast the average operating profit of 6.97 trillion won (US $ 5.8 billion). Some analysts believe that, thanks to the market for Samsung Note 10 and the iPhone strong demand 11.
Samsung recent performance really worth noting. According to sources, Samsung, which launched in late August 5G version of the Galaxy Note 10 smartphone has sold over 1 million units in Korea market, boosting its market in South Korea, Samsung has become the fastest-selling flagship model.
Samsung's upcoming foldable mobile phone also exciting. "Because there is no other foldable smartphone competitors, is expected to produce a large number of foldable Samsung mobile phones next year, could become the high-end smart phone market leader." An anonymous industry analyst, told the 21st Century Business Herald Correspondent .
Furthermore, since the iPhone 11 Samsung uses OLED display, which is also selling Samsung's performance improved to some extent.
According to global market research firm IHS Markit released "global smartphone market research report," As of the second quarter of 2019, Samsung Electronics in the global handset market share of 23% over the same period of Huawei 's share was 18%, Apple's share is 11 %.
Many analysts view the current European market is to seize the opportunity for Samsung Electronics in the field of smart phones. Recently, a number of Huawei Mate Series 30 phone users, said Google will Mate 30 series handset is removed from the SafetyNet system, which means that Huawei Mate installed after the 30 Series family bucket of Google applications programs are also blocked.
"From now, the market center Samsung Note 10 high-end flagship machine in Europe," Sun Yan Biao analysis, he said, "Chinese mobile phone manufacturers in the United States lack of market penetration, coupled with Huawei encounter pressure in Europe, Samsung in the European market could gain more and more interest in the US and European markets, Samsung Note 10 performance is still very worth the wait. "
WU Yi Jie also pointed out, in the context of Huawei handset models can not use Google services, all mobile phone manufacturers want to take the effort to plunder Huawei after market, "Samsung in the global mobile phone market has an unfair competitive advantage to Huawei."
In addition, in view Sun Yan Biao, Samsung advantages in other areas, but also boost Samsung's to lose ground in the global mobile phone market. "In the Arms Competition Chinese mobile phone manufacturer, the Samsung's OLED screen service by domestic manufacturers to pull large, folding screen, surround-screen mobile phones." Sun Yan Biao pointed out that "the current Jingdong side of the OLED screen is also playing catch-up position, Samsung in the market still in a monopoly position. "
In addition to the screen, Samsung also highlight the advantages in the field of mobile phone camera. "As the Sony camera module manufacturers will sell Ophelia light, Samsung camera phone vendors to become the only company to-end solutions provider, to provide chip, a lens and a series of components." Sun Yan Biao, he said.