Samsung Electronics 2020 Target of $400Bn sales – 4G LTE SmartPhone, TV, Display Growth Areas

Samsung 2020 Target of 400BillionWe attended the Samsung Electronics top management conference call in which they highlighted long-term vision and growth strategies to achieve a 2020E $400bn revenue (from $211bn in 13E) target at the analyst day event. In addition to continuous outgrowth with differentiated profitability in existing core-businesses like smartphone, TV, semiconductor and display panels, management seeks growth opportunities in new business areas like appliances, multimedia services, smart home / enterprise solutions and medical devices through seamless investment in R&D, HR and even open innovation/ acquisitions.

Samsung sees better growth opportunities in (more…)

Samsung Mobile / SmartPhones Performance Rocks in Q1-2013

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. (more…)