From other sites
at CNBC.com (Mon, 10:56AM)
at CNBC.com (Mon, 2:46AM)
at CNBC.com (Fri, 3:08AM)
at CNBC.com (Thu, 5:24AM)
at CNBC.com (Wed, 8:15AM)
at CNBC.com (Tue, 2:29AM)
at CNBC.com (Dec 15, 2014)
at CNBC.com (Dec 10, 2014)
at CNBC.com (Dec 3, 2014)
at CNBC.com (Dec 2, 2014)
- Samsung has decided to take on increasingly low-cost products by expanding its operations by $3 billion in Vietnam.
- Samsung enjoys a favorable regulatory environment in Vietnam with the government exempting them from corporate taxes for 4+ years.
- Although Samsung's results have been slightly disappointing, investors might consider the recent dip a buying opportunity.
- Samsung's consistent and increasing dividends could also be attractive for income-oriented investors.
Samsung Could Refocus Growth Strategy As Q3 Earnings Plummet
- Samsung's smartphone business faces its biggest test yet, challenged by the arrival of Apple's large-screen iPhones and increasing competition from budget offerings.
- Semiconductor operations did well, aided by strong DRAM and NAND memory shipments.
- The consumer electronics division was weighed down by seasonally lower sales for appliances and lower pricing for televisions.
Mobile Business Slump Forcing Samsung To Refocus Its Strategy
- Samsung’s pre-earning guidance for Q3 2014 indicated that sales and operating profits are declining due to an underperforming mobile segment.
- The company is losing market share, and is expected to face further declines, as competition in the market for Smartphones intensifies and smaller brands continue to outperform Samsung’s phones.
- Samsung’s chip business seems to be doing well and has reported strong growth in its pre-earnings guidance. In order to capitalize on this, the company has made a $15 billion investment in a new South Korean chip plant.
- Share prices have declined by nearly 20% in the past four months and the company has lost almost $45 billion in capitalization.
- Outlook for the stock seems to be bearish and investment is not recommended primarily because challenges in mobile (the main segment for the business) are going to continue.
With Sales In Freefall, Will Samsung Smartphones Go The Way Of BlackBerry And Nokia?
- Samsung warned that Q3 profit could decline by as much as 60% Y/Y. Its smartphone business is the worst performer.
- Smartphones are being hit on the low end by Chinese competitors and on the high end by Apple.
- Samsung's sharp decline is reminiscent of Nokia and BlackBerry, both of which once held commanding market share.
- If sales continue their freefall over the next several quarters, Samsung's smartphones could go the way of Nokia and BlackBerry.
Samsung's Chip Expansion Antagonistic For Micron? Wall Street, 'The Crowd' At Odds
- Wall Street and certain members of the crowd are at odds over Samsung's intentions for its new $15B chip plant.
- Analysts believe Samsung is gearing up to supply explosive demand in memory, in particular, demand for the 2015 iPhone.
- Certain crowd members believe Samsung could attempt to steal share in semiconductors to offset losses in mobile phones. I am riding with the crowd.
- Samsung came out with a profit warning for the third quarter after disappointing in Q2.
- Rivals are pinching the company's market share on both the high and the low end.
- Apple's new iPhone is expected to put even more pressure on Samsung's sales.
- Samsung issued a profit warning, indicating that Q3 operating profit could fall 58%-62% y/y.
- Competitive pressure from AAPL and low-cost Android handset makers is the main driver behind the decline.
- OPM pressure is mostly due to ASP pressure rather than volume decline, suggesting much of the headwind comes from the low-end segment.
- Samsung Galaxy Note prices will drop at a higher rate following a launch based on historical trends.
- Samsung is pressured by competitive dynamics, commoditization and falling smartphone subsidies.
- These factors put Apple in a much better position to gain market share and reasserts why Apple will continue to outperform Samsung as an investment.
- Apple has been able to design and market superior products over time by keeping the vast majority of design and development in-house.
- Also, Apple’s upcoming iPhone 6 and 6 Plus will have a higher blended average selling price, which will drive sales growth in future quarters.
- Samsung shares have fallen 17% over the past year and trade at just 8x 2014 estimated earnings (6x excluding cash).
- Investors are so concerned about the mobile phone business, the current share price implies a valuation of zero. Similarly, investors are concerned about the low dividend and lack of buybacks.
- An activist investor could potentially unlock value through a partial spin off of the phone business and using excess cash to repurchase cheap stock.
- Taking these simple actions could dramatically increase Samsung's stock price. Shares look to have 90% upside.
- Samsung’s first budget Tizen phone may launch in India the last quarter of 2014.
- Google’s alleged mandatory order to OEMs to pre-install 20 Google apps on Android phones is strong incentive for Samsung to redouble its Tizen OS efforts.
- Samsung did right in choosing India for its first Tizen phone. Samsung is still the No.1 smartphone brand in India.
Samsung Needs Galaxy S6 At This Point To Stand Out
Google's Android One Initiative: The Impact On Samsung
- Through Android One, Google is looking to improve the user experience on low-priced smartphones, enticing customers in emerging markets to upgrade.
- We believe the move could pose a threat to Samsung, the world's largest smartphone manufacturer.
- The initiative could potentially compound Samsung's market share woes in emerging countries, where we expect much of the growth in the smartphone market to come from.
- Samsung now reminds me of Apple of about a year ago. Apple stock price increased more than 50% since then.
- Looking past the current events of shrinking market share and lower profits, we find Samsung deeply undervalued.
- Using DCF valuation makes me believe Samsung is a great long-term opportunity.
- Samsung’s smartphone business has gravely suffered from the rapid ascent of Xiaomi.
- Xiaomi displaced Samsung as the top vendor in China. Global expansion plans for Xiaomi means Samsung’s market share in other countries also will likely decline.
- The two biggest mobile carriers in the Philippines now offer free Xiaomi Mi 3 to their post-paid subscribers. Carrier support will add to the massive growth of Xiaomi.
There are no Transcripts on SSNLF.
Mon, Mar. 31, 6:52 PM
- An early teardown (translation) of Samsung's (SSNLF) Galaxy S5 has turned up the same 6-axis InvenSense (INVN) motion sensor found in the Note 3. The InvenSense part displaces the STMicroelectronics (STM) motion sensor found in the S4.
- Multiple Maxim (MXIM) power ICs were also uncovered. Though Barclays thinks Maxim lost the gesture IC slot it had in the S4 to rival AMS, it nonetheless thinks its dollar content grew ~10% (previous).
- An NXP (NXPI) NFC controller/secure element displaced the Broadcom (BRCM) NFC chip that went into the S4; Barclays estimates the design win will be worth $50M-$60M to NXP, assuming average content of $1. Broadcom is still expected to get $4/unit for supplying the S5's Wi-Fi/Bluetooth combo chip.
- Synaptics (SYNA) is believed to have the S5's touch controller slot and (though not revealed in the teardown) its fingerprint/swipe sensor slot. The company's S4 touch controller win delivered a windfall.
- Though a Skyworks (SWKS) power amplifier module and discrete amplifier were found, and a Wi-Fi filter is believed to be present, Barclays thinks Skyworks' content share likely fell, thanks to the absence of Wi-Fi switch/LNA content. It also thinks the total value of the S5's Wi-Fi RF content is lower due to Broadcom's use of internal power amplifiers (possibly a negative for S4 supplier ANAD).
- Separately, DisplayMate calls the S5's OLED display "the best-performing smartphone display we have ever tested," after doing an in-depth analysis. The display's color accuracy, brightness, ambient lighting performance, and power efficiency all receive high marks. OLED materials/tech supplier Universal Display (OLED) will be happy to hear that.
Mon, Mar. 31, 3:15 AM
- Jury selection is due to start today in the second major U.S. court fight in the Apple (AAPL) vs Samsung (SSNLF) global patent battle.
- Apple is suing the South Korean company for $2B for the alleged violation of five patents, while Samsung has argued that Apple has breached two of its patents.
- Apple's other target is Google (GOOG), with some of Samsung's alleged IP breaches involving Android features such as the ability to dial a phone number written inside a text message.
- As she did in a previous trial between Apple and Samsung, Judge Lucy Koh is set to preside. In the latest encounter, Koh has already ruled that Samsung infringed an Apple patent that automatically corrects words while a person is typing.
Fri, Mar. 28, 9:43 AM
- "We disagree with the bullish consensus, as EPS growth is unlikely to be strong once it hits $2," writes BofA/Merrill's Simon Dong-je Woo, reiterating an Underperform on Micron (MU -1.1%).
- Micron's huge rally leaves shares trading above BofA's memory up-cycle fair value target. In addition, Woo is worried about weakening chip prices (esp. for NAND flash), SK Hynix's (HXSCL) DRAM fab plans, "greater downside" to DRAM spot prices, and execution risk for new memory process deployments - he considers Micron's 20-30nm process tech inferior to Samsung (SSNLF) and Hynix's.
- Earlier this week, Susquehanna downgraded Hynix, arguing Samsung has a technology edge. The firm noted Hynix is still using a 30nm DRAM process, whereas Samsung has made it to 25nm, and says checks suggest its migration to a 16nm NAND process (from a current 20nm process) might be pushed out to 2015.
- Micron has forecast 16nm will account for a majority of its 2H NAND output. Samsung has an early lead on rivals in developing 3D NAND flash parts, but the technology is seeing a slow ramp.
Fri, Mar. 21, 7:01 AM
- Could President Obama one day give up his BlackBerry (BBRY) addiction?
- The White House is testing Samsung (SSNLF) and LG Electronics (LGEAF) smartphones in a development that could threaten one of BlackBerry's last and most high-profile strongholds, the WSJ reports.
- Still, the testing is at an early stage and any use of Samsung or LG handsets is still "months away," while there's no indication - yet - that Obama will switch phones.
- Apple's iPhone is not being assessed.
Tue, Mar. 18, 6:46 PM
- Micron (MU) thinks Friday's Japanese earthquake (6.2 on the Richter scale) will affect its DRAM output by a low-single digit percentage over the next 90 days.
- RBC (Outperform) estimates the quake could affect May quarter revenue and EPS by $50M and $0.02, respectively, and potentially affect its near-term market share.
- At the same time, the firm thinks the quake could have a stabilizing impact on DRAM prices, which have come under pressure after a very strong 2013 fueled by industry consolidation, strong mobile DRAM demand, and a September fire at an SK Hynix (HXSCL) fab.
- TrendForce estimates Micron had a 23% Q4 DRAM share. Industry giant Samsung (SSNLF, SSNGY) had a 48.9% share, and Hynix a 25.9% share.
Fri, Mar. 7, 7:05 PM
- Citing "slowing consumer purchases" amid high penetration rates in mature markets, IDC now forecasts tablet shipments will grow 19.4% in 2014 (to 260.9M units), down from a prior estimate of 22% (271M units).
- Tablet growth steadily slowed in 2014: Shipments rose an estimated 142% in Q1, but just 28% in Q4. IDC puts full-year growth at 52%.
- Two silver linings for high-end/enterprise leader Apple (AAPL - 33.8% Q4 share): 1) ASPs are only expected to drop 3.6% in 2014, after falling 14.6% in 2013, as more consumers embrace "higher-end devices." 2) Commercial buyers are expected to account for 14% of shipments, up from 11% in 2013.
- IDC also thinks Windows (MSFT) tablets, struggling to gain a strong consumer foothold, will take over a quarter of the commercial segment thanks to rising convertible adoption.
- The revised forecast still puts tablet sales within striking distance of eclipsing PC sales: IDC expects PC shipments to drop 6% this year to 295.9M. Smartphone shipments are expected to grow 19% to 1.2B.
- Major tablet OEMs (besides Apple): SSNLF, LNVGY, AKCPF
Thu, Mar. 6, 7:10 AM
- Judge Lucy Koh has turned down a request from Apple (AAPL) to ban certain Samsung (SSNLF) mobile products in the U.S. because of patent infringements.
- However, Koh did complete a $929.8M damages award to Apple stemming from the companies' IP dispute.
- Apple and Samsung are due to face each other again this month in a trial over Apple patents different to those involved in the $929.8M award.
Wed, Mar. 5, 6:06 PM
- After growing ~60% in 2013 (and fueling global shipment growth of 39%), IDC expects Chinese smartphone shipment growth to slow to ~20% in 2014 and just ~10% in 2015.
- Though only 40% of China's 1B+ mobile users now use a smartphone, IDC's Kiranjeet Kaur notes most users who can comfortably afford a smartphone have already bought one. Plunging low-end Android prices could expand the addressable market in a country whose nominal per capita GDP is around $6K.
- India, which has a sub-10% smartphone penetration rate, still presents a major growth opportunity. But with a nominal per capita GDP of ~$1,500, the country is even more cost-sensitive than China.
- With China slowing down and developed markets living up to their name, IDC expects global smartphone growth to slow to 19% in 2014; that still spells total volumes of 1.2B. Tough competition and the ongoing mix shift towards emerging markets is expected to lead the industry's ASP to fall $27 to $308.
- Smartphone OEMs with strong Chinese exposure: AAPL, SSNLF, LNVGY, ZTCOY
- Chip suppliers: QCOM, BRCM, CRUS, SWKS, RFMD, MRVL
- Chinese carriers: CHL, CHU, CHA
Mon, Feb. 24, 3:05 PM
- Samsung's (SSNLF, SSNGY) Galaxy S5 is the first smartphone to support 802.11ac 2x MIMO, a technology that doubles theoretical peak download speeds to 867Mbps compared with regular 802.11ac (supported by the Galaxy S4).
- MIMO support is likely a positive for Samsung combo chip supplier Broadcom (BRCM +0.6%). Broadcom just happened to announce its first 802.11ac 2x2 (antenna) MIMO smartphone combo chip this morning.
- The S5 is also the first smartphone to support phase-detection autofocus (found in SLRs), and among the first to support on-the-fly HDR processing. Samsung claims the S5's auto-focus time (0.3 seconds) is unmatched.
- Along with the S5, Samsung is launching a companion fitness tracker called the Gear Fit. The device can receive notifications from Samsung smartphones, and will compete in a crowded market headlined by Nike's FuelBand.
- The Verge isn't impressed by the S5's fingerprint scanner, calling it "quite unreliable and virtually impossible to activate when holding the phone in one hand." It offers a more positive take on the device's heart monitor.
- S5 event live blogs: I, II
Mon, Feb. 24, 2:40 PM
- As expected, Samsung (SSNLF, SSNGY) has unveiled its next-gen flagship smartphone at a Mobile World Congress event (live blog). Whereas the Korean electronics giant trumpeted a variety of bells and whistles (some might say gimmicks) when launching the Galaxy S4 a year ago, it's taking a more low-key approach with the S5.
- The S5 has a 5.1" display, just slightly larger than the S4's 5" display. The resolution is unchanged at 1080p; past reports had pointed to a 2K resolution. Like Apple (AAPL) with the iPhone 5S, Samsung is integrating a fingerprint sensor into the S5's home button, and is offering a gold model.
- A 16MP camera supporting 4K video recording is included (the S4 has a 13MP camera), as is a perforated back meant to provide better grip. Qualcomm's (QCOM +0.2%) Snapdragon 801 baseband/app processor (2.5GHz., quad-core) powers the device. A heart rate monitor and slightly larger battery are also on board.
- Remarks from co-CEO JK Shin point to a shift in Samsung's product philosophy, one that arguably meshes with reports of a deal with Google to tone down Samsung's efforts to customize its hardware. "Our consumers do not want eye-popping technology or the most complex technology."
- Likely S5 suppliers with strong exposure: OLED, MXIM, SYNA, ANAD
Mon, Feb. 24, 4:00 AM
- The World Mobile Congress has kicked off in Barcelona, with speakers such as Mark Zuckerberg and Jan Koum emphasizing the intersection of computing and mobile.
- Samsung (SSNLF) has already introduced the first two smartwatches that are based on its Tizen operating system rather than on Android.
- The Gear 2 and Gear 2 Neo devices are due to go on sale in April and are compatible with many of Samsung’s Android-based Galaxy smartphones.
- More on Mobile World Congress.
Sun, Feb. 23, 2:11 AM
- Apple (AAPL) and Samsung (SSNGY) are set to face each other again in court at the end of March after the two companies failed to resolve their patent dispute in the U.S. during mediation that included Tim Cook and Samsung co-CEO J.K. Shin.
- The latest trial will involve Apple IP that Samsung allegedly breached in relatively recent products, including the Galaxy S III smartphone.
- Separately, Apple will issue a software update "very soon" to fix a security flaw in PCs running the company's Mac OS X operating system. The glitch leaves email, financial information and other sensitive data exposed.
- On Friday, Apple released a fix for mobile devices running iOS.
Tue, Feb. 18, 6:38 PM
- A source tells The Verge Samsung (SSNLF, SSNGY) "could take the wraps off multiple new Galaxy Gear wearables" at next week's Mobile World Congress. Meanwhile, USA Today reports a new version of the Gear will run on the Tizen OS; the original Gear, widely panned in reviews, runs on Android.
- Samsung is working hard to promote Tizen in the hopes of lowering its dependence on Android (and thus Google). But carrier support has wavered in the face of Android's overwhelming popularity and huge apps/services ecosystem.
- The Gear reports come as the rumor mill for Samsung's Galaxy S5, expected to launch at a Feb. 24 MWC event, continues to churn. Bloomberg backs up past reports by stating the S5 will have a "sharper" (higher-resolution?) 5.2" screen to go with a "larger battery and camera." SamMobile states the S5 (like the iPhone 5S) will have a fingerprint sensor built into its home button.
Tue, Feb. 4, 2:07 PM
- Samsung (SSNLF) has sent out invites for a Feb. 24 event at the Mobile World Congress that's expected to feature the launch of the Galaxy S5. Separately, Korean and Indian sites indicate the S5, like the S4, will eventually be accompanied by a water/dust-resistant Active version, and a Zoom version featuring a camera with an optical zoom.
- The timing of the S5 event is three weeks ahead of when the S4 launched last year.
- The S5 is expected to have ~5.25" display with a whopping 2K (2560x1440) resolution, a 16MP camera, and a fingerprint sensor. It might also ship in both a costlier metal version and a cheaper plastic version.
- The launch of Samsung's next flagship will follow a downbeat Q4 report, and a reported deal with Google in which Samsung agreed to tone down its efforts to offer custom apps/UIs for its Android hardware.
- Samsung is facing stiffening competition from Chinese OEMs as Android sales continue seeing a mix shift towards cheaper hardware (often sold in emerging markets). Following an epic rise from 2011-2013, IDC estimates Samsung's smartphone share fell 30 bps Y/Y in Q4 to 28.8%.
- Companies likely to have strong S5 exposure (as a % of total revenue): OLED, ANAD, SYNA, RFMD, MXIM.
Fri, Jan. 31, 7:20 PM
- After taking in Google's (GOOG) Q4 numbers, FBR estimates handing off Motorola Mobility to Lenovo (LNVGY) could boost the Web giant's op. margin by as much as 500 bps. Whereas Google proper has an op. margin of 34%, Motorola's losses dragged down the company's total op. margin to 29%.
- TechCrunch reports that with Motorola gone, newly-acquired Nest will serve as Google's primary hardware team. Nest, founded by iPod "godfather" Tony Fadell, will reportedly develop gadgets very different from the smart thermostats/smoke alarms it's known for.
- Many observers think the Lenovo sale is at least partly tied to Google's recent deals with Samsung (SSNLF). The reasoning: Samsung's reported willingness to embrace a vision of Android closer to Google's (toning down support for custom apps/UIs, and promoting Google apps/services) is linked to Google's decision to sell its mobile hardware unit.
- It's possible Google also gave Samsung favorable terms in their recent cross-licensing deal. In terms of patent portfolio/breadth, Google held the upper hand.
- In addition to keeping most of Motorola's patents, Google is holding onto the company's Advanced Technology unit, which is responsible for the Project Ara modular phone initiative.
- Lenovo says it will keep the Motorola brand in the U.S., and that it aims to eventually pass Apple and Samsung to be the world's largest smartphone vendor.
- Previous: Google earnings coverage
Wed, Jan. 29, 5:25 PM
- Just an hour after reports emerged Google (GOOG) is set to sell Motorola's phone ops to Lenovo (LNVGY), the deal has been announced by Larry Page. Lenovo will pay $2.91B for the struggling, loss-generating smartphone maker; Google will retain the "vast majority" of its patents.
- Page explains the deal by stating the smartphone market is "super competitive," and that "it helps to be all-in." He promises the sale doesn't have broader implications for Google's hardware efforts.
- Google paid $12.5B for Motorola Mobility in 2011. After backing out the Lenovo sale, the Arris sale, and $3.5B in cash, Google effectively paid ~$3.7B for Motorola's patents, assuming one doesn't count the losses the phone unit has produced under Google's control.
- The sale expands Lenovo's U.S. presence, and gives it access to Motorola's respected hardware engineering teams as it tries to grab high-end Android share from market leader Samsung (SSNLF). IDC estimates Lenovo had a 4.9% smartphone share in Q4 (up from 4.1% a year ago).
- The deal also removes a point of friction between Google and its Android partners. It shortly follows a report stating Google has pressured Samsung to tone down its Android UI changes and more strongly emphasize Google's apps/services, as it tries to exert greater control over Android's look and feel.
- GOOG +2.2% AH. In addition to the Motorola deal, shares could be getting a lift from Facebook's Q4 beat.
SSNLF vs. ETF Alternatives
Other News & PR