Jul. 31, 2014, 3:05 AM
- Samsung (OTC:SSNLF, OTC:SSNGY) is planning a few new global smartphone launches to retrieve its lost market share and make up for its first quarterly net loss in almost three years.
- Two high-end smartphones releases are planned within the next six months. "One model will have a large screen while the other will be built using "new materials", says SVP Kim Hyun-joon.
- The company will also introduce new mid-to-low-end models to counter low-cost Chinese competition.
Jul. 28, 2014, 4:26 AM
- Samsung (OTC:SSNLF, OTC:SSNGY) has postponed the launch of the Samsung Z (featuring the new Tizen operating system) which was scheduled to go on sale in Russia during the third quarter of this year.
- The company did not give any future timing to the launch, but cited the need to "further enhance the Tizen ecosystem."
- The delay will be costly to Samsung, which reported softer numbers and missed second-quarter estimates earlier this month.
Jul. 16, 2014, 4:37 AM
- Samsung (OTC:SSNLF) is looking to partner with Under Armour (NYSE:UA) to increase its wearable devices product line, South Korea's Yonhap news agency reports.
- A meeting was stated to have taken place between Lee Jay-yong, the heir of Samsung Group, and Under Armour CEO Kelvin Plank earlier this month discussing ways to combat Apple-Nike's wearable device market share.
- Apple and Nike have been connecting sports wear with smart devices since 2006.
Jul. 14, 2014, 2:04 AM
- Samsung (SSNLF, SSNGY) has temporarily suspended business with its Shinyang supplier factory after finding evidence suggesting that the child labor allegations which surfaced last week could very well be true.
- The accusation was made by the New York-based China Labor Watch which reported several cases of underage workers at the facility.
- “If the investigations conclude that the supplier indeed hired children illegally, Samsung will permanently halt business with the supplier,” announced the South Korean company.
Jul. 10, 2014, 3:50 AM
- Samsung (SSNLF, SSNGY) is facing new child labor accusations at its Shinyang supplier factory in China.
- The allegations were made by the New York-based China Labor Watch after finding several cases of underage workers at the facility. The factory seems to employ children and underage students during busy seasons, generally hiring them for three to six months.
Jul. 9, 2014, 11:58 AM| 13 Comments
Jul. 9, 2014, 10:18 AM
- Morgan Stanley reports Samsung (SSNLF, SSNGY) plans to hike its DRAM output. Micron (MU -3.5%), whose shares have risen over 6x from their fall 2012 lows, is selling off in response. Peer SK Hynix (HXSCL) fell 4.1% in Seoul.
- Digitimes recently reported Samsung is thinking of building a new DRAM fab in 2015, as industry consolidation and strong mobile and server-related demand keep prices high. The site also reported spot prices for 4Gb DDR3 DRAM chips could rise to $4.80-$5.00 in Q3, after rallying to an 18-month high of $4.35 in late June.
- TrendForce estimates Samsung had 35.5% of the global branded DRAM market in Q1, SK Hynix 28.2%, and Micron 28%.
- This morning, SA author David Alton Clark argued Micron investors should tread carefully at current levels, given the DRAM industry's historical cyclicality.
- Previous: Samsung reportedly planning to hike DRAM contract prices
Jul. 8, 2014, 4:40 AM
- Samsung (SSNLF), Intel (INTC) and Dell have teamed up to create a standard by which household gadgets communicate with each other, called the Open Interconnect Consortium. The partnership also includes chipmakers Broadcom (BRCM) and Atmel (ATML).
- The new consortium will rival the AllSeen Alliance, a similar framework supported by Qualcomm (QCOM), LG (LGEIY), Microsoft (MSFT) and other companies.
Jul. 8, 2014, 3:03 AM
- A Samsung Electronics (SSNLF) factory in Brazil was robbed yesterday, after 20 thieves stole $6.4M of cellphones, tablets and other products. The company is hoping that insurance will minimize the cost incurred from the stolen inventory.
- The heist is also a setback for Brazil, which has been trying for years to draw more electronics makers to do business in the country. Besides for the high employment costs and taxes in Brazil, added security concerns can now have some manufacturers thinking twice.
- ETFs: BRXX, BRAQ
Jul. 7, 2014, 11:43 PM
- Samsung (SSNLF, SSNGY) expects to report Q2 revenue of KRW51T-53T ($50.4B-$52.4B), and an op. profit of KRW7T-7.4T ($6.9B-$7.3B). Those guidance ranges are below Bloomberg consensus estimates of KRW53.2T and KRW8.1T.
- The electronics giant blames "mid-to-low end" phone competition in China and Europe, a strong won, and higher marketing spend aimed at lowering phone inventories.
- Also, tablet shipments fell more than expected due to a weak market, and mobile weakness had a spillover effect on internal display and chip sales.
- Samsung is facing intensifying low-end/mid-range smartphone competition from Chinese OEMs pricing aggressively - its smartphone share fell Y/Y in both Q1 and Q4 (per IDC) following a long run of share gains, while Huawei and Lenovo each grew rapidly. Xiaomi, which shipped 26.1M phones in 1H14 (+271% Y/Y), is also a growing threat.
- The tablet weakness comes after the market's growth slowed to a trickle in Q1. Notably, Samsung states phablets are cannibalizing 7"-8" tablets, and a lack of carrier subsidies is leading to low upgrade rates (previous).
- Samsung is "cautiously" optimistic about Q3. It expects hardware refreshes to boost smartphone sales, and for display and memory chip sales to also rise.
- Shares are up 0.5% in Seoul. Investors have been expecting soft Q2 numbers.
Jul. 7, 2014, 2:59 AM
- Samsung (SSNLF) is facing a tough time on all fronts, as competition from cheaper models and the launch of the iPhone 6, will likely cause profit to decline again this quarter. Chairman of the group, Lee Kun-hee, also suffered a heart attack in May, leaving the company without a leader and unclear succession.
- According to a Thomson Reuters poll, the company is expected to say on Tuesday, that earnings fell 12.6% for the second-quarter. Previously, CFO Lee Sang-hoon announced that the company's Q2 results "doesn’t look too good."
- As a result of this year's 5% stock drop, Samsung says it will compensate investors by boosting dividends.
Jul. 1, 2014, 5:55 PM
- Digitimes reports Samsung (SSNLF, SSNGY) and Globalfoundries have landed orders from Qualcomm and Apple for chips to be made using their next-gen 14nm FinFET (3D transistor) process. Production is expected to start in early 2015.
- Samsung and Globalfoundries inked a FinFET licensing deal this spring in an effort to challenge TSMC's (TSM +2.7%) foundry market hegemony. Qualcomm is a top TSMC client, and Apple (though historically relying on Samsung) is reportedly relying on TSMC to help make its upcoming A8 and A9 CPUs.
- TSMC, which has had an edge in ramping 28nm and (more recently) 20nm chip production, is responding to Samsung/Globalfoundries' challenge with plans to launch a 16nm FinFET process by year's end, and (more importantly) roll out its low-power 16nm FinFET+ process in early 2015.
- TSMC claims 16nm FinFET+ chips will consume 30% less power than 16nm FinFET chips at the same clock speed, and offer 40% better performance than comparable 20nm chips.
- Digitimes states TSMC plans to launch a FinFET+ process "tailored to Apple's requirements," as part of its efforts to manufacture the A9.
Jun. 30, 2014, 7:02 PM
- With the help of a strong Galaxy S5 launch and healthy low-end phone demand, Android's (GOOG) U.S., Chinese, EU5, and Japanese shares respectively rose to 61.9% (+990 bps Y/Y), 82.7% (+1130 bps), 73.3% (+150 bps), and 47% (+50 bps) during the March-May timeframe, says Kantar Worldpanel. (PR - .pdf)
- Results were mixed for the iPhone (AAPL) ahead of the expected fall launch of 4.7" and 5.5" iPhone 6 models: U.S. and Chinese shares respectively fell to 32.5% (-940 bps Y/Y) and 14.7% (-910 bps), but EU5 and Japanese shares rose to 16.6% (+80 bps) and 51.7% (+210 bps). With March quarter iPhone ASP at $596, revenue shares are bound to be higher.
- More evidence large screens are a bigger selling point in Europe (among other places): 17% of European Galaxy S5 buyers said they switched from Apple, while only 8% of U.S. buyers said the same. 58% of European S5 buyers already owned a Samsung (SSNLF, SSNGY) phone.
Jun. 30, 2014, 10:05 AM
- Three weeks after hiking its Micron (MU +3.5%) PT to $50, Credit Suisse is planting itself even more firmly on an increasingly crowded bandwagon by adding the memory giant to its Focus List.
- CS praises a valuation of 9.8x EPS, and sees new products and margin expansion driving future EPS growth.
- Separately, Taiwan's Economic Daily News reports Samsung (SSNLF, SSNGY) has told clients it plans to raise DRAM contract prices by 10% starting in July.
- The paper also states spot prices for mainstay 4Gb DDR3 DRAM chips (widely used in PCs) could reach $4.60 in Q3. DRAMeXchange showed an average Friday price of $4.255, following a Q2 gain of nearly 20%.
- Previous: Micron jumps post-earnings
Jun. 26, 2014, 5:43 PM
- Samsung's (SSNLF, SSNGY) occasionally tense relationship with Google (GOOG) - Samsung is by far the world's biggest Android OEM, but its efforts to customize if apps, services, and UI often haven't gone over well with Google - appears to be thawing, judging by the announcements at Google's I/O conference.
- Most notably, Samsung is now allowing its KNOX mobile security platform to be built into Android. KNOX provides a slew of data protection, authentication, and device/app management features for enterprises who might otherwise be nervous about letting employees work with Android hardware.
- Newly-public MobileIron (MOBL -2.6%), one of several device/app management software firms whose feature set overlaps to an extent with KNOX, sold off a bit today, but closed well off the day's lows.
- Samsung has also announced the Gear Live, a $199 smartwatch based on Google's Android Wear platform. The launch comes even though Samsung is already selling two smartwatches based on its Tizen platform (still suffers from a weak app ecosystem), and Google is preventing OEMs from installing custom UIs (such as Samsung's TouchWiz).
- Samsung suggests it'll still try to offer some proprietary apps/services for Android Wear smartwatches. LG and Motorola are among the other OEMs backing the platform.
Jun. 25, 2014, 7:32 AM
- Execs at Samsung (SSNLF) are not expecting great results this quarter, after announcing that company performance has been declining. Shares have fallen 8.5% so far this month, after a string of downgrades in earnings forecasts.
- “It doesn’t look too good,” says CFO Lee Sang-hoon, in reference to second quarter results.
- The company is scheduled to report its second-quarter earnings estimates in early July.
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