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Samsung reportedly puts in soft component orders

  • Digitimes reports Samsung (SSNLF) "putting in weaker-than-expected handset component orders to the supply chain" amid toughening competition, particularly in China. The site adds Samsung, which last month launched its latest flagship (the Galaxy S5), is mostly expected to cut orders for cheaper smartphones.
  • The report comes a few days after InvenSense (INVN -2.8%) offered a soft June quarter outlook, while estimating Samsung will return to accounting for a mid-30s % of revenue after making up 47% of March quarter sales.
  • Strategy Analytics estimates Samsung saw its smartphone share fall 120 bps Y/Y to 31.2% in Q1 (89M shipments out of 285M), following many quarters of steady share gains. Strategy also estimates Lenovo (LNVGY) grew its share to 4.7% from 3.9%, and that Huawei's share was steady at 3.9%.
  • Other Chinese OEMs, including Xiaomi, ZTE, and Coolpad, have also been seeing healthy shipment growth amid an industry mix shift towards cheaper phones aimed at emerging markets. Xiaomi (also a major InvenSense client) is looking to roughly double its shipments in 2014 to 40M.
  • Other suppliers with heavy Samsung exposure: OLED, MXIM, SYNA, ANAD.
Comments (7)
  • DanoX
    , contributor
    Comments (2577) | Send Message
     
    Apple is really kicking them somewhere private, Samsung's earnings are even weaker than what they have reported in public.
    6 May, 04:08 PM Reply Like
  • Philip Marlowe
    , contributor
    Comments (917) | Send Message
     
    The weakness is in cheaper smartphones. It has nothing to do with Apple, it is about rising competition from Chinese manufacturers. Regarding US component suppliers, the only ones that will be affected will be those that (i) supply into cheaper samsung smartphones and yet (ii) do not supply into chinese manufacturers. I do not know who (if anyone) satisfies these conditions. It is definitely not INVN because they are sell into a lot of Chinese manufacturers and it is not SYNA because they sell into the more expensive models.
    6 May, 04:55 PM Reply Like
  • Budavar
    , contributor
    Comments (1387) | Send Message
     
    Philip = thanks for your enlightenment which should get much wider distribution!
    7 May, 05:47 AM Reply Like
  • Ivan Jimenez
    , contributor
    Comments (400) | Send Message
     
    Philips

     

    Xiaomi is also making some very nice high end phones that are selling good with $ATML touch chips inside.
    7 May, 10:40 AM Reply Like
  • Shaduc
    , contributor
    Comments (950) | Send Message
     
    Ivan:

     

    What is a high-end smartphone? I can't find a Xiaomi for over 2k RMB (US$350).

     

    http://amzn.to/RrDu2G__mk_zh_CN=亚马逊网站&s...
    7 May, 12:09 PM Reply Like
  • Ivan Jimenez
    , contributor
    Comments (400) | Send Message
     
    That's exactly the point!
    The Xiaomi Mi3 is a high end phone for only 1,999 Yuam/Renminbi

     

    Forbes calls the Mi3 a threat to the iPhone!
    "Apple, Be Afraid: China's Xiaomi Going Global"
    "Cupertino should be worried. Xiaomi’s Mi3 in China is cheaper than the iPhone 5c—1,999 yuan versus 4,488—and better—the Xiaomi phone has a larger and sharper screen and a camera with higher-density pixels."

     

    http://onforb.es/1iYxiLw

     

    The Mi3 features a aluminum body, 3G, 1.8GHz quad-core Tegra 4 Processor, 2GB RAM and 16GB storage.

     

    http://bit.ly/1iYxiLy

     

    The Mi3 has been selling in like hot cakes in the millions.

     

    http://bloom.bg/1eidmSW

     

    http://zd.net/1iYxiLG
    7 May, 07:31 PM Reply Like
  • Shaduc
    , contributor
    Comments (950) | Send Message
     
    " high end phone for only 1,999 Yuan"

     

    Apparently Xiaomi's customers are not IPhone's market.
    7 May, 11:38 PM Reply Like
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