Semiconductor Supercycle: Samsung’s Record-Breaking Sales Thrust


A South Korean based multinational electronics company, Samsung Electronics Co. Ltd. informed that the semiconductor supercycle has motivated the company to empower the achievement of record-breaking outcomes with around 147 percent net turnover. Speed is vital to retain constant in today’s competitive digital era as latest technologies are being persistently introduced to the market. Simultaneously new markets are needed to be established frequently.

Owing to the market of memory chip and elastic OLED panel sales are estimated to continue with promising and advanced conditions, the tech giant of South Korea is anticipated of continuing the component business to stimulate its earnings in the upcoming quarters.

Samsung’s Snowballing Operational Profit

In the previous year, as sales increased 30 per cent to Won62tn, the net profit from July to September quarter grew-up to a record of Won11.2tn from the record of Won4.5tn and the operational profit was closely tripled to Won14.5tn ($12.8bn). In the newest quarter, the foremost driver of income was the two-thirds operational profit of memory chips. With the comparison of Won3.4tn with a year prior, the semiconductor division displayed Won9.96tn as an operating profit. Owing to the industry’s success for a supercycle D-RAM chips plea for mobile devices and the service of outpacing source, the company achieved that profit. As investors have forgotten the current leadership crunch and flutter on robust attitude of the company for next year, this year Samsung shares have enhanced a memory explosion about 50 per cent.

In the previous year, Operating profit extended at its moveable business to Won3.29tn from just a Won100bn profit that emphasized a comprehensive recovery from former year’s overpriced safety catastrophe of the Galaxy Note 7 phones. As Apple’s ultra-premium iPhone X conducts a sale on Friday, it is estimated that the company is going to face a rigid competition from Apple at the end of the year’s holiday sales. Though LCD panel prices fell in the third quarter, the operating profit persisted firmly at the display division with a round of Won1tn. But the performance of the division is predicted to progress in the fourth quarter and on sturdier OLED demand in the succeeding year.

Focus on Up-Surging the Sells

The company stated that in the fourth quarter, a taut supply and demand situations are the company antedated by the company to linger for the memory chip business owing to the strong request for mobile devices and servers. Samsung’s supercycle is made primarily to satisfy this increasing demand for memory chips. The company informed that memory is also expanded to the Pyeongtaek 1 production line to encounter the rising plea for V-NAND along with the investment in 10-nano foundry production outlines.

With all these additions, Samsung is now anticipating an approximate double capital expenditure to Won46.2tn in the current year from last year’s Won25.5tn to occupy the majority of it on growing memory chip services and about Won29.5tn for semiconductors & Won14.1tn for display panels will be consumed.

Robert Lewis

Robert graduated from Brandman University, where he got his bachelor’s degree in Business Administration. Born in Massachusetts, Robert’s family moved to Kentucky in 2005 where he spent his college life and worked as an insurance agent for four years. Now is the founder and team leader of the website.

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