Samsung can lose $ 1 billion for Apple

Samsung can lose $ 1 billion for Apple

Last week, investors, analysts and the media have focused on reporting business results are not as expected from Samsung Electronics. Second quarter, the company reduced rate of 20%, to $ 6.1 billion, due to smartphone sales slowed and the won strengthened.

Samsung also is gradually losing market share globally. In China, they are no longer carriers of a mobile phone while he is ahead of the Xiaomi smartphones sold in the second quarter.

Samsung’s outlook more gloomy if we look at the array processor production. Until the end of last year, they remain the exclusive manufacturer of parts for Apple products. Accordingly, Apple memory design, using the structure of the UK’s largest chip maker – ARM, Samsung also manufacture to order.
Samsung

Samsung no longer is the exclusive supplier of memory chips for Apple. Photo: Bloomberg

However, earlier this year, Apple has gradually moved the mission to Taiwan Semiconductor Manufacturing manufacturer of Taiwan (China), Wall Street Journal quoted a source said. This is partly because the two companies are rivals. Samsung Apple always guilty of stealing its designs. Samsung And Apple also many times next corner on the TV ads.

Also due to the change of the supplier to Apple, Samsung’s chip manufacturing segment is IBK Securities Co. (Korea) predicted losses 877 billion won (851 million dollars) this year. Last year, this segment nearly $ 200 million profit.

In a recent meeting, acknowledged leader Samsung arrays future is not so bright. Robert Yi – The director of investor relations at Samsung, said: “Revenue and profit of System LSI (memory array) reduced demand from key customers continue to go down.” WSJ commentary for that assertion, albeit indirect, Apple’s move was eating away the profits of Samsung.

To solve this problem, vice president of memory marketing Plate – Ji-ho Pak said Samsung would improve profits by increasing sales of chips other systems, such as image sensors, and apply cost saving measures.

Samsung can lose $ 1 billion for Apple
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