Samsung is the global leader in smartphone and memory chip shipments
Of course, what company wouldn’t want to build more “mega-hit” handsets. Analysts said that if Sammy follows through on this, it will be staking its 20% share of the global smartphone market against low-cost challengers from China such as Xiaomi, Oppo, and Vivo in markets outside of China.
DRAM prices declined 9.5% during the fourth quarter
A turnaround in DRAM pricing is important to Samsung considering that the memory chips saw their pricing decline 9.5% in the fourth quarter year-over-year. Prices are expected to decline even more during the current quarter. Supplies of non-memory chips should remain tight thanks to the current chip shortage, demand for 5G capable handsets, demand for chips to restock inventory, and increased outsourcing by fabless chip design firms.
Samsung’s fourth-quarter operating profit rose 53% to the equivalent of $11.6 billion. Its largest business segment, chips, saw profits more than double from the year-earlier to the equivalent of $7.33 billion. Despite such strong results, the numbers failed to meet market expectations thanks to higher R&D and one-off year-end bonuses. Net profit rose 64% to $8.93 billion. Revenue rose 24% to a record $63.30 billion.