SAMSUNG ELECTRONIC KRW5000 (OTCMKTS:SSNLF) saw 15% increase in operational profits in its fourth quarter, but fell short of its blockbuster 80% operating profit increase it achieved in the third quarter.
The fourth quarter’s comparative drop in operating profits reflects the impact of global drop in demand for electronic components on the South Korean electronics giant.
Bernstein: better chip technology
Commenting on SAMSUNG ELECTRONIC KRW5000 (OTCMKTS:SSNLF), Bernstein’s analyst, Mark Newman suggested that the better technology of their microchips had let the company to leverage better prices though the production costs were lower. Moreover, the earnings had reached appoint which made it tough for the company to keep pace.
Newman added that the low 2015 prices caused the over-sized inventories had now shrunk. But it would be for SAMSUNG ELECTRONIC KRW5000 (OTCMKTS:SSNLF) own ‘sense’ that it does not outperform the rest of the market. The company is currently faced by drop in demand for its memory chips with advanced technology.
Thus far, Samsung has strategized its chips, screens and circuit prices to overcome the global recession in smartphone sales.
HSBC: Folding-screen tech important
With stagnating sales in smartphones at higher end as well as ‘commodity’ devices, the focus will now turn to Samsung’s next-generation ‘folding-screen technology,’ according to HSBC analyst, Ricky Seo.
The new technology developed by SAMSUNG ELECTRONIC KRW5000 (OTCMKTS:SSNLF) allows phone screens to be unfolded to create tablet-sized screens. Disruptive in ways, because it rewrites much of mobile computing current formats, it currently has to contend with investor concerns about fall in earnings impacting drop in share prices.
Anthony Young
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