Seoul [South Korea], September 10 (ANI): Samsung Electronics is anticipated to fare higher than different main smartphone makers as rising reminiscence costs squeeze the worldwide handset market, whereas the identical provide scarcity is supporting its semiconductor enterprise, The Korea Herald reported, citing a report by Japanese brokerage Mizuho Securities.
The report forecasts world smartphone shipments at 1.15 billion items in 2026, down 9 per cent from a 12 months earlier. In distinction, Samsung’s shipments are anticipated to stay broadly flat at 240 million items.
The brokerage stated Samsung and Apple are comparatively properly positioned to safe reminiscence provides and have larger publicity to flagship smartphones. This may give the 2 corporations extra room to soak up larger element prices or cross them on by means of larger costs.
The world smartphone market has been going through rising stress from shortages of DRAM and NAND reminiscence. The news report famous that Counterpoint Research had reported an 11 per cent year-on-year decline in world smartphone shipments within the second quarter, whereas Samsung’s cargo share elevated to 24 per cent from 20 per cent a 12 months earlier.
The affect of upper reminiscence prices has been strongest on entry-level and mid-range smartphones, the place reminiscence accounts for a bigger portion of manufacturing prices, the report stated.
Samsung’s semiconductor enterprise is in the meantime benefiting from larger reminiscence costs and powerful demand for chips utilized in synthetic intelligence servers. Its Device Solutions division, which incorporates the reminiscence enterprise, recorded an working revenue of 89.2 trillion gained (USD 66.4 billion) within the second quarter, in line with the news report.
However, Samsung’s Mobile eXperience and Networks companies reported an working lack of 700 billion gained (about USD 521 million) throughout the quarter, with the corporate citing larger element prices throughout the trade.
Samsung plans to focus its second-half smartphone gross sales on flagship merchandise, together with the Galaxy Z8 and S26 collection, whereas rising the share of premium gadgets, the report stated.
The firm’s show enterprise may additionally profit from Apple’s entry into foldable smartphones. Mizuho has lowered its estimate for manufacturing of Apple’s first foldable handset this 12 months to 4.1 million items from 5.8 million, partly attributable to delays linked to unresolved hinge points.
Despite the slower anticipated ramp-up, Mizuho expects Samsung Display to produce 8 million-8.5 million foldable panels throughout the 12 months, in line with The Korea Herald. (ANI)Â