What They Say
DSCC dug into the recent Samsung Q3 results and trends. (Samsung Electronics Down but Still Makes $7.65 billion). After looking at overall revenues and semiconductors the firm analysed the results for the different divisions over time.
Samsung’s inventory was already high at the end of Q2 but increased further in Q3. Samsung inventory increased by $3.53 billion Q/Q. A part of the increase was DX inventory to ensure stable supply. Most of the increase was memory and Samsung will continue to work to manage inventory to balanced levels.
Although Samsung’s semiconductor business remains its main profit driver, Samsung also outperforms its competitors (except for Apple) in its smartphone and TV device businesses and in its display business. In display, Samsung’s strategic decision to exit LCD and build an OLED smartphone panel business has paid off with handsome profits.
What We Think
Samsung’s big bets on OLED have been shown to pay off. As Sweta sets out in her Display Daily (due for publication later today) reporting on the DSCC Supply Chain webinar, OLED still has a lot of room for technology innovation and cost reduction. LCD really does look like the internal combustion engine at the moment. (BR)
