samsung-galaxy-mobile

Impact of Google’s Moto X Android Mobile on Apple iPhone / Samsung Galaxy

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Moto X SmartPhone - Impact on Apple and SamsungGoogle launched announce its first jointly developed smartphone with Motorola, the Moto X. Given Motorola management’s recent comments regarding a gap in the market between low-priced feature phones and high-end smartphones, we believe Google’s strategy could have two notable implications: (1) the Moto X could launch with an aggressive gross margin profile where, in-synch with the Nexus 7 strategy, they seek to sell the phone at a breakeven gross margin, which could help Google take share, or (2) Google could launch Moto X with a margin profile comparable with competitors’ offerings currently but potentially take steps to drive industry margins down over time.

Potential impact on Apple with the launch of Moto X
Looking beyond the initial Moto X launch, Apple’s powerful platform-centric strategy and its significant installed base loyalty, part of Apple’s competitive edge has come

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Samsung SmartPhone & Memory Business Still Looking Up

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Samsung Mobile and Memory Business GrowsSamsung Mobile, the leader in Android based SmartPhones continues to ride high differentiation options despite device exhaustion. Despite market concerns of commoditization / standardization (drastic margin erosion) of the high-end smartphone segment amid saturation, Samsung is confident that it can sustain high-end leadership with leading-edge in-house components (unbreakable flexible display, advanced mobile AP along with mobile memory solution).

Samsung believes economies of scale will work for cost leadership even in the mid- to low-end segment. We expect Samsung will monetize fast smartphone growth, leveraging on its well-established distribution channel in its existing feature phone business and

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Samsung Mobile / SmartPhones Performance Rocks in Q1-2013

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Samsung’s OPM of handsets, which rose from 21% to 22%, were probably better than indicated taking into account the negative impact from the provision booked related to AAPL vs. Samsung case. We think this is impressive given such performance occurred during the weakest seasonal quarter, without a major product launch. Therefore, we think the next several quarters should continuously be strong given the upcoming Galaxy S4 launch and Galaxy Note 3 launch in 4Q13.

Smartphone shipment of 70 mn (12% QoQ growth) is strong given the seasonality and lack of new product launches. Blended handset ASP rose 8% QoQ and OPM expanded to 22% from 20% despite the one time provision took related to the AAPL. However, 1Q total handset volume did not increase, but the smartphone products rose 12% in volume sequentially.

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