Samsung Electronics is going to release Gen 3 V-NAND in third quarter at the earliest and strengthen ‘Super Differential’ semiconductor business. It is also going to strengthen correspondence to premium Smartphones such as Galaxy S6 Edge Plus, Galaxy Note 5, and others. Finally it is going to challenge itself to sell 14 million copies of TVs, which is 20% increase compared to previous quarter, based on premium products.
Samsung Electronics announced such plans at management presentation conference call on the 30th.
Executive Director Lee Myung Jin of Samsung Electronics said that although seasonal peak season for electronic industry is coming in second half of 2015, market situation is not very good right now. We are going to actively push to improve profitability strategy by strengthening internal stabilities per business.
Although Samsung Electronics’ sales in second quarter (41.3 billion dollars (48.54 trillion KRW)) decreased from second quarter in 2014 (44.6 billion dollars (52.35 trillion KRW)), it actually improved from first quarter (40.1 billion dollars (47.12 trillion KRW)). Operating profit in second quarter (5.9 billion dollars (6.9 trillion KRW)) also decreased from second quarter in 2014 (6.1 billion KRW (7.19 trillion KRW)), it actually made 851 million dollars (1 trillion KRW) more than previous quarter (5.1 billion dollars (5.98 trillion KRW)). While electronic component (DS) including semiconductors sustained all record by recording all time performance, consumer electronics (CE) returned to surplus.
◊ D-RAM, NAND, System LSI Completes Triangular Formulation
Targeting mobile and server markets, Samsung Electronics’ Device Solution (DS) field is increasing the importance of high-capacity 3D V-NAND Flash Memory, DDR4, and LPDDR4 D-RAM and then added values. System LSI field which succeeded in making surplus in last second quarter is expanding foundry and growing profitability through mobile application processor (AP), high-pixel image censor (CIS), and etc.
Memory and system LSI evenly led Samsung Electronics’ semiconductor performance in last second quarter. System LSI which had a deficit was able to increase its sales 40% compared to previous quarter through 14-Nano mobile AP, CIS, Flexible Display Driver IC (DDI), and etc.
It is going to introduce Gen 3 (48-layer) 3D V-NAND in third quarter. “If we mass-produce Gen 3 V-NAND, competitive edge in our product cost will get better and we will be able to respond to increased demands from enterprise and data center fields due to V-NAND’s strengths such as high-capacity, high-performance, and high-reliability. Depending on condition of development of Gen 3 products, we will be able pull time of expansion of NAND-Flash output in Xi’an in China forward.” Executive Director Baek Ji Ho of Memory Marketing Team talked about many advantages that Gen 3 V-NAND will bring.
◊ IM field will focus on selling flagship models in second half
IM field’s strategies in third quarter are to sustain steady sale of high-end Smartphones and strengthen sale of medium to low-priced phones. Samsung Electronics is going to flexibly manage prices of Galaxy S6 and Galaxy S6 edge and increase sales of premium phones.
Samsung Electronics is going to introduce Galaxy Note 5 and Galaxy S6 Edge Plus in New York next month. This is somewhat usual considering that it made Note series public at IFA in September.
It is also going to continuously strengthen sales of medium to low-priced phones, which shrank due to competition against Chinese companies. Samsung Electronics is explaining that sales of medium to low-priced phone models such as Galaxy A5, A7, and others are maintaining expected initial standard.
Director Park Jin Young of Samsung Electronics IM Department said that it is going to steadily maintain sales of premium phones through operation of flexible price and release of large-screen new models. He also said that it will focus on improving performance in medium to low-priced phone field by introducing new models with competitive edge in prices and making lineups more efficient.
Samsung Electronics’ sales volume of cellphones in second quarter is 89 million copies and it is expected that 71 to 73 million copies are Smartphones.
◊ CE that made surplus will continue to grow in third quarter
Video Display (VD) Business Department overcame slump as sales of premium products such as UHD, curved, and etc. centered on North America increased. Its goal in third quarter is to grow by latter half of one cipher. It is going to increase UHD and curved models even to economic models and strengthen improvement in profitability.
Household appliance’s performance improved as sales of Chef Collection and Active Wash increased.
Director Jung Young Rak of Samsung Electronics’ VD Business Department’s Video Strategy Marketing said that sales of home appliances in North America increased greatly and it is similar in Europe and Western South Asia.
It is planning to maintain its upward trend by increasing point of contact with customers in second half. It is going to focus on improving values of premium products by installing ‘Samsung Open House’, which was first introduced as an experience-type home appliance store in Beijing in last April, in every major retailer globally. Although economic insecurity in Europe and rising nations is ongoing, it is planning to be number 1 in home appliances and number 1 in TV for 10 years in a row by actively going after conventional peak season.
Customer Electronics (CE) field was able to overcome its 120 million dollars (140 billion KRW) deficit due to TV business’s slump in first quarter and succeeded in making surplus of 179 million dollars (210 billion KRW) in second quarter. As SUHD TV, Chef Collection Refrigerators, Active Wash Washing Machines received favorable comments globally, it decided to secure growth power through ‘Premium’ and ‘Innovation’.
Senior Reporter Kim, Seungkyu | seung@etnews.com& Staff Reporter Bae, Okjin | withok@etnews.com& Staff Reporter Seo, Hyeongseok | hsseo@etnews.com& Staff Reporter An, Hochun | hcan@etnews.com