Demand for Samsung's electronic memory solutions, which skyrocketed as NAND flash memory and DRAM memory have increased, has become an integral part of smart phone, computing and cloud data center applications, and Apple and other domestic brands are adopting higher Capacity storage products, making DRAM demand maintained at the highest level in history.
However, the industry is rapidly moving to 3D NAND, especially TLC 3D NAND, which will help to further ease the pressure on manufacturers and bring the price of DRAM to a more reasonable level.Because of the increasing demand for DRAM, the supply situation is very tight, As a result, DRAM prices have been so high that Samsung Semiconductors contributed nearly three-quarters of operating profit.
Samsung Semiconductor Group revenue in the fourth quarter of 2017 increased by 50%, profit soared 131% .Samsung Semiconductor currently in its solution operating profit margin close to 52% if you remove the LSI and foundry business, the storage part of the profit Will be higher.
In comparison, the profit margin of the mobile business unit fluctuated only at 10%, while the Samsung monitor business benefited from the launch of the iPhone X OLED model with revenue up 58% YoY in the fourth quarter, but operating profit Only a 10% increase, due to the cost of Apple's custom displays, but expected profits to rise as costs are spread over the life of the device.
Since Samsung Semiconductor is the key to Samsung's revenues and profits, even if Samsung's mobile business loses the top three most important and largest mobile markets in the world: China, India and the United States, it is expected to resume growth in 2018. Europe, Middle East Africa and Latin America are still home to Samsung Electronics, but Huawei, Moto, Tecno Group, BBK Group (OPPO, Vivo and OnePlus) and Xiaomi will challenge the Korean maker this year.
Overall, Samsung Electronics is effectively outperforming consumer business due to strong quarterly performance of its components business, effectively transforming Samsung into a semiconductor and systems company, and Samsung's components business will surpass its DMC (CE + Telecom) business. (Proofreading / small autumn)
