News
Samsung having Troubles: Low IT Devices Demand Surges
Highlights
- Samsung and other prime players in the smartphone industry are reducing the purchase of the components due to the plummeting market.
- The industry has been hit by the limited supply of components, and this has resulted in a capacity reduction in production and manufacturing.
- Requirements for tech devices, especially smartphones, are diminishing due to macro factors.
The latest development in the tech industry has come to light, as it is already known that the market is facing issues because of the snail-paced demand for electronics devices and the pertaining issue with the supply of both raw materials and semiconductor components shortage.
This time, According to the reports from the media industry, requirements for tech devices, especially smartphones, are diminishing due to macro factors (the factors that make up the macro-environment are economic factors, demographic forces, technological factors, natural and physical forces, political and legal forces, and social and cultural forces) such as international interest rate hikes, Europe becoming a warzone, and China’s lockdowns due to the pandemic.
Samsung keeps and manages a Buy rating (a statement that the shares of a particular company are worth buying) on SEC.
Samsung experienced a lower TP from W87,000 to W78,000. A take-profit order (T/P) is a type of limit order that specifies the exact price at which to close out an open position for a profit.
The TP also faced a downward adjustment (Averaging down is a strategy in which investors buy more of an asset as its price falls) because of the trimming of estimated earnings in 2022E~2023F( A trimmed mean removes a small designated percentage of the largest and smallest values before calculating the average) and an assumption to hikes in Samsung’s risk-free rate(The risk-free rate of return is the interest rate an investor can expect to earn on an investment that carries zero risk) in line with increased interest rates.
Samsung and other prime players in the smartphone industry are reducing the purchase of the components due to the plummeting market to cut down losses and reduce the stock inventory. Samsung also reduced from 310 million to 280 million units which is nearly 10%, while its supplier informed it would go down up to 270 million earlier this month. And recently, this month, Samsung got stuck with 50 million smartphones in stock too.
Additionally, Samsung’s smartphone sales are also anticipated to go down to 68 million units by a -9% q-q (quarter on quarter).
However, a feeble but steady surge in the semiconductor industry has been observed due to the pandemic giving rise to the health and education sector especially. This could result in the semiconductor industry rising and performing in early 2023 instead of mid-2022, as was anticipated.
As a result, in addition, DRAM supply growth will likely be limited to +17% in 2022 and +18% in 2023.
This could result in the following anticipated scenarios :
- Samsung to the record sales of 2022 2ndQ with W74.9tn (-4% q-q) and OP of W14.1tn (flat q-q).
- Shares of the class W are intended for private and institutional investors and are issued as capitalization shares wrt in tomorrow next or tom next.
- Semiconductor Division -2022 Q2 OP is projected at W10.0tn (+18% q-q).OP Shares mean ordinary shares issued in the share capital of the Company from time to time.
- SDC (display)- W0.8tn (-22% q-q).
- MX/NW (phone division)- W2.5tn (-35% q-q). & VD/HA at W0.7tn (-15% q-q)
These figures will mostly be reflected in earnings at the MX division, i.e. Samsung’s mobile phone manufacturing business was renamed Samsung MX, which means Mobile Experience.
The industry has been hit by the limited supply of components, and this has resulted in a capacity reduction in production and manufacturing.
In the recent share price decline, the closed share price of Samsung on June 31 2022, was 69,600 KRW, on March 31, compared with 81,400 last year. Furthermore fell to 62,100 KRW as of June 13 2022.
Currently, SEC shares are trading at a 2022E P/E (price to earnings) of 8.0x and P/B (price to book)of 1.2x. This is the 10-year low for the firm’s P/B sits at 1.0x for this decade.
This year Samsung group ranked 22nd position from 15th last year, making it drop down 7 steps on the global market cap in comparison to last year’s position with a market value of $342 billion as of March, according to the PwC report.
Also, we saw Samsung and LG Again Scale Down The Production this month. It’s been a plummeting month in terms of growth for tech industries.
Sources & References :
The Korean brand – Samsung has recently announced its two mid-range Galaxy smartphones – Galaxy A55 5G and Galaxy A35 5G. A new benchmark listing has a spot for Samsung’s affordable smartphone, Galaxy35 5G.
Samsung is now gearing up for its next affordable Galaxy smartphone, the M35 5G, as the reports are unvunveilhey have found a new benchmark listing for Samsung the Galaxy M35 5G.
The smartphone has been spotted with the model number as an identification code – SM-M356B on the Geekbench 6.2.2 database. Not only this, but it also confirmed the presence of 6GB of RAM and Android 14 OS. The chipset also came to know which is the latest Exynos 1380.
The codename for the motherboard is also mentioned, which is ‘s5e8835.’ The reports say that it has scored 656 and 1967 points in performance scores on the benchmarking platform. Exynos 1380 is the latest chipset of the Korean brand, which is a 5 nm processor. It consists of 4 Cortex A78 cores, which clock at 2.4GHz, and 4 Cortex A55 cores, which clock at 2.0GHz. It is coupled with a Mali g68 MP5 GPU. It also has an AI Engine.
This also offers connectivity options, which include the latest Bluetooth version 5.3 and Wi-Fi 802.11 ax with three bands. It supports a camera resolution of at least 200MP for capturing images, and for video recording, there is support for up to 30fps 4K recording. The storage supported is UFS v3.1, and RAM will be of the LPDDR4x/5 type.
Samsung has recently debuted its two smartphones, Galaxy A55, and Galaxy A35; the Galaxy A35 5G smartphone is powered by Exynos 1380 chipset. From this perspective, Galaxy M35 5G could be a variant of Galaxy A35.
At the moment, no specs and features of the device have been revealed or leaked. Still, since Galaxy M series smartphones usually have a bit higher battery power of at least 6000mAh, the forthcoming Galaxy M35 5G smartphone also arrives with the same battery power.
Firmware
Verizon rolls out the March 2024 security patch update for the Galaxy Z Fold 3 and Galaxy Z Flip 3 devices
Verizon has rolled out the March 2024 security patch update for the Galaxy Z Fold 3 and Galaxy Z Flip 3 devices. Earlier, these devices had received the same update outside the US, but now they are gradually expanding to the US.
The Galaxy Z Fold 3 and Galaxy Z Flip 3 are spotted getting new updates with the firmware version numbers F926USQS5HXBD and F711USQS6HXBD, respectively. It is worth noticing the update is currently available for the devices locked to Verizon, but it will soon be available on more carriers.
For your information, the latest update for Galaxy Z Fold 3 and Galaxy Z Flip 3 doesn’t bring any significant changes, but as it is the latest security patch, it will provide some internal fixes to maintain the security of the devices.
If you are getting some other issues from the last update, you should also update the device to the latest update, as it may also address some issues. Along with the update, other improvements may also be made to enhance the overall performance of the devices.
Suppose you use the Galaxy Z Fold 3 or Flip 3 device in the US. In that case, you can update the device to the latest version by simply going to the system settings and then to the software update. If you haven’t received the update, you should wait for some time, as it may arrive in the next few days.
Firmware
Samsung rolls out the March 2024 security patch update for the Galaxy S23 FE devices in the US
Samsung has rolled out the March 2024 security patch to almost all devices but still needs to complete the update distribution to all eligible devices. So, gradually expanding the update to remaining devices, the company has started rolling out the update for the Galaxy S23 FE in the US.
Notably, the Galaxy S23 FE devices are getting a new update in the carrier-unlocked version with the firmware version number S711U1UES2BXBF. The update has already been rolled out to almost all carriers, including AT&T, Bluegrass Cellular, C-Spire, Cellular South, Comcast, Cricket, DISH, MetroPCS, T-Mobile, Tracfone, US Cellular, Verizon, and Xfinity Mobile.
According to the official changelog, the March 2024 security patch is one of the standard maintenance updates that provides some internal improvements for the device, and there will be no visible changes available. In other words, users may experience some improvement in the functioning of devices, but it doesn’t particularly bring any specific changes for the device.
Going to the details, the March 2024 security patch includes more than 40 fixes, 37 of which are provided by Google and address the issues found in the Android OS, while 9 more features are introduced by Samsung that enhance the performance of Galaxy devices exclusively.
Suppose you are using the Galaxy S23 FE in the US. In that case, you can update the devices to the latest version by following the simple steps: first, go to the system settings, tap on the software update, and tap on the download and install button; if it shows a new update available, tap on the download button.