Friday, October 5th 2018
![Samsung](https://tpucdn.com/images/news/samsung-v1723408558483.png)
Memory, not smartphones, is what is really working at Samsung
Smartphones or TVs may be Samsung's most popular products, but they are certainly not the most profitable for the company. The South Korea electronics giant has announced its estimates for the third quarter of the year, and that data points to the company achieving the highest operating profit in its entire history. Samsung is set to reach 17.5 trillion won ($15.8 billion), up 20% from the same period last year. Not only that: revenues will also reach a record 65 trillion won ($57.3 billion), almost 5% more than last year.
The surprise of these results lies precisely in the products that have been the main protagonists of these revenues and profits. It wasn't smartphones, and in fact in the second quarter those lost more market share than any other manufacturer with a Galaxy S9 and a Galaxy S9+ whose sales haven't been as good as expected. TVs weren't that succesful either.In Samsung what shines is the memory division: this year the company became the largest semiconductor manufacturer in terms of revenue surpassing Intel, and that relevance has been maintained and has grown. In the second quarter alone, its memory business grew 33% in revenue while the mobile division decreased 22% in revenue. The trend had already been pointed out by the giant in the second quarter of the year, and has been maintained throughout this year.
Source:
CNET
The surprise of these results lies precisely in the products that have been the main protagonists of these revenues and profits. It wasn't smartphones, and in fact in the second quarter those lost more market share than any other manufacturer with a Galaxy S9 and a Galaxy S9+ whose sales haven't been as good as expected. TVs weren't that succesful either.In Samsung what shines is the memory division: this year the company became the largest semiconductor manufacturer in terms of revenue surpassing Intel, and that relevance has been maintained and has grown. In the second quarter alone, its memory business grew 33% in revenue while the mobile division decreased 22% in revenue. The trend had already been pointed out by the giant in the second quarter of the year, and has been maintained throughout this year.
21 Comments on Memory, not smartphones, is what is really working at Samsung
But somethin tells me they didn't really lose any when I bought my 2 Note 9's the other day.....
And all that moolah from the memory division will allow them to spend more on R&D for their other product lines too, so it would appear to be a win-win-win situation for them and us too !
Not everyone wants to see that shit. get some PR people to make a video talking about the phone and its features etc etc pay google to get it trending on youtube... you'd save a lot of money on overheads. problem solved.
dial back on the marketing/PR campaigns, spend less money so you can offer the fone up at a more reasonable 'affordable' price otherwise you are almost doomed to fail.
People used to joke about chinese phones but companies like Xiaomi, Oppo and a few others are absolutely destroying the market when it comes to bang for buck.
Pocophone F1 is about $300, and the specs are almost similar to the more expensive samsung S9 which is $800-1000+??? you get so much phone for your money for $300 with the F1.
Crooked company.
android is no good. Samsung makes everything.
Manufacturers together manipulating memory prices should be looked at as an international crime syndicate.
They cheat customers in every corner of the world out of hundreds of Billions of dollars, how can that not be criminal.
You can not just fine these guys with a few billions, it is chump change for them, threaten them with 30-50 years in jail and you will see them stop immediately.
"It's amazing what a nice bit of price fixing and market collusion will do for your financials!"
"Crooked company. "
"android is no good" (in an article about Samsung mind you)
"Memory manufacturing is better than printing money, especially when you control the market prices."
"They cheat customers in every corner of the world out of hundreds of Billions of dollars, how can that not be criminal."
All of this from users that can't even imagine the engineering and cost of producing complex memory that continually needs to update and change. It seems to me memory is still wildly cheap considering the tasks it handles. The whole concept of price fixing can;t even apply here. Price fixing needs to involve a valuable item that is a necessity for a small fixed set of consumers. The price can be set so high the consumer in need cannot afford and thus incurs damage. Memory is so wide spread and necessary the market sets the price consumers will pay and maintains the highest profitability possible.
You must be living under a rock not hearing about the Chinese government opening an investigation as to collusion between DRAM makers... Or maybe you enjoy paying $160 for some middle of the road DDR memory, I however, remember when it cost nearly a quarter of that, and they were still making big profit then!
Just go back to sleep now, before lashing out at the more informed, more money conscious people here.
The point I'm trying to make is that Samsung can be criticized for some of their absurd pricing, not all of it is due to their "greed" & a large part of it goes to their after sales support ~ which in India is way ahead of any of their Chinese rivals.