Although Xiaomi has achieved excellent results in the European market, once surpassing Samsung's long-term solid position, Samsung still achieved the best financial report in history. According to a report released by Samsung Group on October 8, in the third quarter, its operating profit increased by 27.9% from the third quarter of last year to 15.8 trillion won (about 13.3 billion US dollars), and sales increased by 9% year-on-year to 73 trillion won (about 61 billion US dollars). The growth rate set a new best score.
In fact, this result has been reflected in Samsung's past stock price, which increased by 45% last year, and reached its highest price in January this year, with 96,800 won ($83) per share. Last quarter, Samsung-Electronics' results were showy enough, with revenue of 63 trillion won (about $55.7 billion), up 18.9% year-on-year. Operating profit reached 12.5 trillion won (about $11.05 billion), an increase of 53% year-on-year, which far exceeded market expectations and directly shocked all semiconductor-electronics investors.
In the third quarter, although the growth rate was slightly slower than that in the second quarter, the same momentum was not small. Of course, the main reason is that Samsung has made a fortune from the epidemic. In Samsung Electronics, the Samsung-semiconductor business occupies nearly 36% of the share, and in the recovery period of the epidemic, the world has ushered in a crisis of insufficient supply chain, commodity prices have risen sharply, semiconductor production capacity is seriously in short supply, and chip shortages have even led to some automakers having to stop production. As one of the world's largest chip foundries and memory supply factories, Samsung naturally rises with the wind and skyrockets.
In fact, before the epidemic, Samsung Electronics also experienced a painful march, when the price of chips and memory fell continuously, and under the consequential situation, the profit of Samsung Electronics was also very ugly, falling by more than 50% for two consecutive quarters. Of course, the cheap supply of memory and chips led to the cheap price of mobile phones, and mobile phone sales have been rising steadily at that time.
In addition to the semiconductor business, on the product side, Samsung's folding screen technology that has been cultivating for many years has finally ushered in market returns. During this year's Q2, Samsung launched the third-generation Galaxy Z Fold 3 and the Galaxy Z Flip3 aimed at female users. More than 1 million units have been sold in just over a month on the market, and the cheapest starter versions of both phones are both priced at 1.2 million won (about $1,000). In the global high-end Android market, no domestic brand has a series with this level of appeal.
Of course, with the global offensive of domestic manufacturers and the return of the semiconductor cycle, after 2021, whether Samsung can still shine is still a problem.
<h1 class="pgc-h-arrow-right" data-track="3" > fierce opponent</h1>
Once upon a time, as the leader of Android mobile phones, Samsung's only opponent was Apple. Now the rise of domestic Android phones is posing a major threat to Samsung on a global scale. After Huawei lost the international market, Samsung's biggest and most dangerous opponent seems to be Xiaomi
In August, at Xiaomi's anniversary, Lei Jun gave his annual speech once a year, setting a new goal in an honest but unabashed tone of ambition. "Within three years, the Xiaomi market will be the first in the world." On the eve of the speech, the latest research report of well-known research institutions showed that in 2021Q2, Xiaomi's European shipments increased by 67%, which has surpassed Samsung and reached 25.3% of the total European market. Of course, this advantage is slightly weaker, only 700,000 more mobile phones than Samsung. Of course, this is still a landmark event. In the global market, Xiaomi has a market share of 17%, second only to Samsung.
<h1 class="pgc-h-arrow-right" data-track="5" > Samsung's trump card</h1>
Of course, Samsung, as South Korea's largest industrial and commercial joint chaebol, mobile phones are just a corner of its rivers and lakes. Samsung still has its own trump card, that is, Samsung Semiconductor, this year Q2 Samsung has surpassed Intel to become the world's first chip manufacturer. In the foundry field, it has a 17% market share, second only to TSMC and much higher than SMIC and UMC. In terms of technology, Samsung continues to develop, and has released 3nm and 2nm process plans. Mass production of 3nm process products is expected in the second half of next year. But in terms of profits, due to Samsung's price-under-price strategy in order to win the market, resulting in low profits, coupled with huge development and investment expenses, resulting in a profit of only $260 million in its semiconductor business, even less than SMIC.
All in all, although Samsung's terminal business has not benefited too much from Huawei's contraction, the semiconductor and chip business has ushered in a vigorous development, and as for the development after the epidemic, it still needs to wait and see.
This article is original by Lu Chao Shengcai, welcome to pay attention, take you to increase knowledge together!