Samsung Electronics Co.’s profit missed analysts’ estimates and the company warned of weaker first-quarter results as smartphone competition intensified and memory prices remained weak.
South Korea’s biggest company reported net income in the three months ended December of 6.45 trillion won ($5.84 billion), missing the 7.3 trillion won average of estimates compiled by Bloomberg. The company disclosed preliminary numbers earlier this month that showed operating profit rose by 26%.
10 Million People Decided to Learn a Language with the Babbel App Ad Babbel Coming off a strong third quarter of mobile sales, the world’s largest smartphone maker struggled in the holiday period as Apple Inc. introduced its first 5G-capable iPhones and Chinese rivals put up fierce competition.
Memory chip prices were weak during the period, though demand is starting to gradually improve.
Along-awaited recovery in memory chip prices has “finally arrived and analysts are busy upgrading their memory price estimates,” said Yungsan Choi, analyst at Ebest Investment & Securities.
Demand for more powerful 5G smartphones along with server inventory buildup will be major drivers in the year ahead and price momentum will last into the early half of 2022, he added.
Component supplier Murata Manufacturing Co. and chipmaker MediaTek Inc. both anticipate more than half a billion 5G handsets to be shipped this year.
Samsung’s business is showing positive signs of growth at a time when its de-facto leader, billionaire heir Jay Y. Lee, is back in prison following his sentencing on bribery charges.
Chipmakers Intel Corp and Micron Technology Inc. gave a bullish forecast for the first quarter of this year on continued demand for computers and phones that enable working and studying from home.
Taiwan Semiconductor Manufacturing Co. is planning another record-breaking year of investment with as much as $28 billion set aside to expand and improve its production capacity at a time of silicon supply shortages affecting
everyone from global automakers to mobile tech giants like Apple Inc. and Qualcomm Inc. Samsung’s contract chip manufacturing business is expected to expand with the addition of Intel as a customer.
The two companies have discussed development and production of Intel’s mainboard chipsets over the last two years and Samsung will produce the chipset at its Austin, Texas plant starting from this quarter, Meritz Securities said in a note.
Samsung Is Said to Mull $10 Billion Texas Chipmaking Plant The existing Austin fab is capable of operating on a 14-nanometer process.
With rising expectations of growth in the foundry market, Samsung is considering building a cutting-edge logic chipmaking plant in the region that would be capable of fabricating chips as advanced as 3nm in the future, Bloomberg News reported earlier.
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