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Samsung led the global smartphone market in Q2 2021: SA
On July 29, 2021, the market analyzing firm – Strategy Analytics released the latest report of the global smartphone exports grew +11% YoY in Q2 2021, with a volume of 314.2 million units.
This is the second annual growth rate (after Q1 2021’s + 28% YoY growth rate) in recent years, benefiting from positive comparisons. However, global smartphone exports have dropped by 11% QoQ, mainly due to the second wave of COVID-19 in India and South East Asia, as well as the impact of supply refusal.
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Global Smartphone Shipment in Q2, 2021
In the second quarter of 2021, Samsung retained its top spot with a market share of 18.2%. However, Samsung registered the lowest annual growth rate (+5.4% YoY) among the top five retailers. It believes that tight competition from emerging Chinese retailers and a supply chain ban have both impacted Samsung’s performance this quarter.
Xiaomi jumped to the top 2 for the first time. It shipped 52.8 million units of smartphones worldwide in Q2 2021 and took a market share of 16.8%. Of all the top five retailers, Xiaomi has registered the highest annual growth rate (+ 85.3% YoY).
Xiaomi has quickly and successfully used the chances of withdrawing LG’s withdrawal from Latin America, and Huawei’s collapse in the European region. And, Apple set a record in the second quarter. It exported 47.4 million units of iPhones worldwide and accounted for 15.1% of the market share.
The emerging markets are playing a growing role in Apple’s global map. It estimates that China has overtaken the USA the single largest market for the Apple iPhone this quarter, for the first time. 5G has enabled the iPhone 12 series to continue to be well received by loyal iPhone fans in the country.
On the other hand, the other Chinese retailer OPPO and Vivo topped the top five list, with 10.6% and 10.0% market share respectively this quarter. Both traders have seen double-digit growth rates, mainly from China, India, and other overseas markets.
//Source
On March 28, market research agency DSCC predicted that this year’s global OLED sales would be $38.7 billion, down 7% from the previous year. Since Chinese display makers selling OLEDs at cheaper prices, demand for rigid Samsung smartphone OLEDs decreasing.
According to the report, smartphone OLED shipments by the application are similar to last year, but sales are expected to decrease by 8%. Possibly, it’s because of the decrease in rigid OLED sales and the decrease in average selling price (ASP).
Samsung Display
Smartphone OLED is expected to record 77% of shipment share and 78% of sales share in the entire OLED market this year. Smartwatch OLED is expected to account for 15% of shipments and 5% of sales. As revealed by Samsung Display, it’s expected to keep its market leadership this year as well.
Samsung D will reportedly supply OLED for all four models of the upcoming Apple iPhone 15 series, with a whopping share of 60 percent. The South Korean display maker is likely to see a three-digit YoY increase in monitor and automotive OLED shipments.
BOE Display
BOE’s OLED sales share is expected to rise from 9% last year to 13% this year. In the iPhone 15 series, BOE’s share was estimated at 18%. Compared to last year, DSCC explained that in the iPhone 15 series, the number of models that BOE supplies with OLED has increased to two, a regular type and a Plus.
LG Display
LG Display could increase its overall OLED market share from 20% last year to 21% this year. The expected market share of LG Display in the iPhone 15 series is 22%. The OEM supplies OLED only to the Pro lineup in the iPhone 15 series.
This year, LG Display’s share in the monitor OLED market is expected to be 35% based on shipments and 35% based on sales. The company’s share in the TV OLED market is estimated to be 85% based on shipments and 81% based on sales.
TV OLED
TV OLED shipments are expected to decline by 12% and sales by 15%. In addition, OLED shipments and sales required for augmented reality (AR) and virtual reality (VR), vehicles, laptops, monitors, and tablets are predicted to grow.
Samsung is one of the world’s largest chipmakers, which got badly affected by the global market downturn. In the fourth quarter of 2022, the market share gap between Samsung and TSMC further widened. TSMC managed to face the market loss with less drop in sales compared to Samsung Elec.
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According to a recent TrendForce report, TSMC grabbed a whopping 58.5 percent share of the foundry market, securing the first rank. Samsung Electronics maintained its second rank in the market with a 15.8 percent share, with a gap of 42.7 percent.
“TSMC was able to increase its market share as its foundry competitors underperformed. Samsung lost a large share of its orders as Qualcomm and Nvidia placed orders for sub-7nm semiconductors for flagship products with other companies.” – TrendForce
It’s worth mentioning that the growth and decline are not just limited to Samsung Electronics and TSMC. The entire global foundry industry posted a decline in revenue in Q4 2022 because foundry customers, fabless companies that specialize in semiconductor design, decreased their orders due to inventory issues.
Samsung and TSMC at the cutting edge of technology, saw quarter-over-quarter revenue declines of 3.5 percent and 1 percent respectively, while mid-tier foundry companies were hit harder. They were a 12.7 percent drop in revenue for third-place UMC, 27.3 percent for PSMC, and 30.3 percent for VIS.
Last but not least, China’s SMIC and Hwahong Semiconductor also recorded drops of 15 to 26 percent. In the aftermath of this, China’s Nexchip dropped out of the top 10 list, and DB HiTek, a mid-sized foundry company in Korea, joined the top 10 clubs instead.
2023 begins as a bad year for Samsung Electronics’ memory chip business as the division lost $2.3 billion in the first two months of 2023. According to koreajoongangdaily source, the company lost 3 trillion won in January-February, and it’s expected to continue throughout the first quarter of 2023.
According to the report, the company estimates that the operating loss could reach up to 4 trillion won by the end of the first quarter. Due to the global economic downturn, it’s going to be the first loss for the division since the fourth quarter of 2008.
“Internally, there was a report projecting up to 4 trillion won in operating losses from the memory chip business in the first quarter,” koreajoongangdaily source said.
Samsung Elec reportedly borrowed 20 trillion won from its Display division to help in the funding of semiconductor investments. The company said that it will maintain this year a similar level of capital expenditure as last year without any plan to “artificially” cut back production of semiconductors.
Among all divisions, the DV division is Samsung’s most profitable business, which was significantly affected at the end of last year. The decreasing semiconductor business is expected to get recovered only after the global shortage and economic downturn lessens.
In 2022, Samsung’s chip division brought in 23.8 trillion won of operating profit. The business’s operating profit came in at 8.5 trillion won in the first three months, 9.9 trillion won in the second and 5.12 trillion won in the third. However, it reduced by 97 percent YoY in Q4 as the division posted a 270 billion won profit.
As per TrendForce report, DRAM prices will likely slide 20 percent in the first quarter and another 11 percent in the second quarter, which already faced a 34 percent decline in 2022. Moreover, NAND flash chips will go down 10 percent in the first quarter and 3 percent in the second.
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