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Samsung smartphone business sees profit slide, some hopes in DRAM

Yewon Kang | Jan. 30, 2015
Samsung Electronics' operating profit in its mobile business slid 64 percent in the fourth quarter of 2014, the result largely of competition in the Chinese market where it struggles against rising brands like Xiaomi.

Samsung is the largest supplier of DRAMs, which are used in smartphones and personal computers. It is likely to transition from using the low-power DDR3 to the newest low-power DDR4 3GB for its next flagship Galaxy S6, scheduled for release at the end of the first quarter, said Tae-young Kim, a Seoul-based analyst at Nomura, in a research note. Apple will also likely adopt DDR4 2GB for the iPhone 6S by the end of the third quarter this year, Kim said.

"Samsung is still a component supplier for Apple and is expected to increase its partnership, supposedly in supplying the 'A9' chips, because it has the leading technologies than the competitors," said Lee of IBK Securities.

Samsung reported a total operating profit of 5.29 trillion won in the October-to-December quarter, a drop of 36 percent, from 8.31 trillion won in the same quarter a year earlier, the company said. Revenue was 52.73 trillion won in the quarter.

 

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