The set businesses, meanwhile, will focus on maintaining profitability through expanded sales of flagship products. As for the year ahead, Samsung anticipates market demand in smartphones to slightly increase with solid replacement demand growth in the mid- to high-end segment.
While market competition is expected to intensify, Samsung will focus on sales of premium products to solidify its leadership in major markets. However, competition is expected to intensify with newly launched smartphones in the market.
ForSystem LSI will diversify its 14nm product line-up for automotive, IoT and wearable industries and produce differentiated products with innovative technologies. For the memory business, amid strong demand for servers and mobile devices, the company will look to maintain profitability by enhancing cost competitiveness through sales of 1xnm DRAM and layer V- NAND.
However, uncertainties in the business environment may pose challenges. Additionally the home appliance business will continue to secure new sources of revenue by increasing investments in samsung business report 2011 calendar B2B segment. Information on annual earnings is stated according to the business divisions as of As for the Digital Appliances Business, the company will strengthen its partnership with retailers and expand sales of seasonal products, including air conditioners, and focus on the launch of new products such as Family Hub 2.
As a result, its impact on the first quarter financials was minimal. Looking at the mid- to long-term, the growth of IoT, Samsung business report 2011 calendar and automotive businesses in the IT industry is expected to drive demand for components, particularly high-performance energy-efficient memory products, SoCs and sensors, as well as flexible OLED panels for new form factors.
Looking to the second quarter, TV market demand is projected to show a slight decrease YoY due to sluggish demand mostly in Europe.
For the components businesses, semiconductor earnings growth is expected to continue. For LCD, the company maintained solid earnings QoQ by increasing sales of large-size high-resolution panels under favorable supply and demand conditions. As for the display business, the company will focus on fulfilling strong demand for flexible OLED panels, and look to maintain profitability in LCD through enhanced cost reduction.
However, tight supply-demand conditions may change due to possible expansion of industry supply. The memory business posted significant earnings growth, both YoY and QoQ, led by favorable supply-demand conditions and sales growth of premium high-density enterprise SSDs.
Profits were driven by the components businesses, namely the semiconductor division and the display panel segment. This increase was largely due to the newly released Galaxy A series and solid sales in the mid- to low-end segment in emerging markets. For the mobile business, market competition is expected to intensify in the second half.
In the second quarter, the company expects to secure growth with solid market demand for 10nm APs, image sensors and DDIs. The System LSI business improved its earnings on the back of increased sales of application processors for flagship smartphones and greater demand for image sensors and display driver IC DDI.
Samsung will remain profitable with high performance, high value-added chipsets. In the first quarter, the TV market is projected to decline QoQ due to weak seasonality as well as decreased demand in the European and Latin American markets.
In the first quarter, sales for the memory and display businesses increased, owing to high ASPs and strong sales of premium products.
For LCD, demand for large-size and UHD panels is forecast to continue and the company will focus on securing profits through expansion of value-added products, including ultra large-size and curved panels, and by improving yields and reducing costs.
However, overall profit for the division decreased due to price adjustments of Galaxy S7 and S7 edge. Even amid slower demand due to weak seasonality compared with the previous quarter, the prices of memory products remained strong due to limited supply.
Sales for each business include intersegment sales Note 2: Moreover, Samsung will also look to sustain profitability in the mid- to low-end segment by launching new products and streamlining the lineup. This will be led mainly by the components businesses based on favorable supply-demand conditions for memory and greater shipments of OLED panels.
However, revenue from the mobile business decreased due to a decline in flagship product sales. For the LCD business, under expanding market conditions the company will continue to focus on strengthening profitability and competitiveness through value-added and differentiated products such as frameless and curved TVs.
While smartphone and tablet market demand saw a slight decrease QoQ due to seasonal effects, smartphone shipments for the division slightly increased. In addition, the company will maintain profitability in the mid- to low-end segment.
Although the company achieved sales growth and maintained its leading position in the premium market thanks to its high-end product line-ups including Quantum Dot TV and curved TV, profit declined YoY due to increased panel prices and currency fluctuations.Samsung Electronics Business Report 1 / SAMSUNG ELECTRONICS Co., Ltd.
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