Business
Samsung reportedly calls for management review of its mobile business due to recent failures
A new South Korean media report says that Samsung has been conducting a management review of its mobile business this month, which is expected to end later this month. The report also reveals that the company could commence an audit of its mobile business.
Well, it’s not super surprising news as the Korean tech giant commences periodic reviews and special reviews of its many business units. However, the company’s periodic reviews are done every four to five years to examine or estimate the situation of business units implement measures to increase their efficiency.
According to TheElec, Samsung is conducting the review because of the poor earnings from mobile devices and supply chain management problems it is facing. The report also shows that Samsung is highly likely to miss its sales target for Galaxy S21.
It’s worth mentioning that the Galaxy S21 series is expected to have sold only 13.5 million units during the first half of the year. However, the Galaxy S series of old sold over 30 million units, while the Galaxy S20 series sold around mid-20 million units.
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TheElec sources also revealed that Samsung’s poor performance in 5G smartphones is also a reason for the review even as it was one of the first companies to launch 5G smartphones in 2019 but has fallen behind in market share to rivals in recent years.
Apart from this, well-known tipster FrontTron revealed that Samsung’s management review was being held since May. It means the company is well aware of its continuous reducing global smartphone sales and preparing to get rid off of supply imbalance.
The review could be done in light of Samsung Electronics vice-chairman Lee Jae-yong’s potential parole release later this month. The leader could be reviewing all core business units before his release to prepare to act accordingly when he is released, the sources said.
A Samsung spokesperson declined to comment on the matter. However, they added that the individual business units could review their own business practices without the top management conducting a review.
Business
Samsung holds onto top spot but Apple, Xiaomi getting closer
Samsung remained the king in the Q2 2024 market, but Apple and Xiaomi are getting closer. IDC market research data shows that Samsung led the worldwide smartphone market in the second quarter of the year and Chinese brands scored rapid growth.
According to IDC, Samsung sold 53.9 million devices in the second quarter. The company occupied an 18.9% market share internationally. The company has slightly improved its sales share up from 53.5 million units in the same period last year.
The data suggests that Apple ranked second in terms of global volume sales. The iPhone maker shipped 45.2 million devices in Q2, 2024. It captured a market share of 15.8%, a modest increase from 44.5 million shipments in the second quarter of last year.
Third comes Xiaomi. The Chinese brand saw massive growth in sales year over year. It had sold 42.3 million smartphones in the second quarter alone. It’s a big jump from 33.2 million units shipped in Q2 2023, becoming a potential threat to Apple and Samsung.
Apart from this, Vivo also recorded significant growth in the global market. The company’s year-over-year growth in Q2 was 21.9%, with sales listing 25.9 million units with a market share of 9.1%. The growth percentage shows that aggressive marketing and boasting competitive specs into devices is paying off.
Samsung, Apple’s game isn’t over…
Last week, Samsung launched its new foldable phones, releasing on July 24, 2024. Apple, on the other hand, is expected to launch new flagship iPhones in September. It means, Samsung will enjoy the third quarter as well. The fourth quarter might be of Apple as iPhone sales would sharply grow in the global market given the new lineup release.
Samsung is now preparing to unveil new FE products later this year, followed by the S25 series in early next year. Chinese brands are expected to debut their latest flagships in the last quarter of this year, while Google Pixel phones are also coming in August.
Business
Samsung expects massive profit boom in Q2 given AI rise
Samsung today announced provisional sales and profit results for the second quarter. Samsung formally announced the provisional/predicted sales and operating profit, suggesting a massive profit boom in Q2, 2024 given the AI memory semiconductor rise.
In Q2, 2024, Samsung sales provisionally increased by 2.89% and operating profit by 57.34% compared to the previous quarter thanks to AI boom. Besides, the sales climbed by 23.31% and operating profit by 1,452.24% compared to the same period last year.
The company expects sales of 74 trillion won and operating profit of 10.4 trillion won on a consolidated basis. While these results are not final, there won’t be much change in the final result when it comes out. Samsung had a pretty profitable period in the second quarter.
Samsung in Q2
- Consolidated Sales: Approximately 74 trillion Korean won
- Consolidated Operating Profit: Approximately 10.4 trillion Korean won
The Korean tech giant is currently facing yield issues in its second-generation 3nm process. The flagship Exynos processor is unlikely to be commercialized this year. It would lead the Mobile business to face additional burdens due to rising prices of Snapdragon chipsets.
Meanwhile, Samsung is focussing on HBM (high bandwidth memory) semiconductors. HBM is a key player in artificial intelligence servers and data centers. The booming AI market will directly benefit Samsung’s semiconductor business.
Business
Samsung leads Q3 smartphone market, Huawei’s entry haunts Apple
Samsung ranked first in market share in the global smartphone market in Q3, 2023. TrendForce report says that Samsung led the global Q3 smartphone market, recording a market share of 19.5%.
Overall production in the third quarter increased by 11.5% compared to the previous quarter to 60.1 million units. During the same period, Apple’s production increased by 17.9% to 49.5 million, thanks to iPhone 15.
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Third place was taken by Xiaomi (13.9%), followed by Oppo (12.6%) and Transion (8.6%). 6th place is Vivo (8%). Meanwhile, global smartphone production reached 308 million units, a 13% increase compared to the previous quarter and a 6.4% increase from the previous year.
Huawei’s re-entry into the flagship smartphone market targeting Apple has had a significant impact in China. Huawei is aiming to expand its high-end flagship series, focusing on the Chinese domestic market next year, so Apple “We plan to attack directly”.
// Source