What Display Daily thinks: As I have been told repeatedly by analysts, 70% of the panel area manufactured every year goes into TVs. Samsung is selling prime real estate with its premium OLED big screens so, it looks like a growing market because the screens are growing in size but not necessarily the audiences.
So, Samsung is going smaller on OLED. It just signed a contract with Sunic Systems for $9.2 million worth of OLED display deposition equipment “intended for research.” Depending on what rumor you want to follow, it is either for OLEDos development for a lower cost Apple MR product or Samsung’s own XR product anticipated for 2025. The company is also on track to expand its production for IT OLED displays.
And, Samsung Display is on track with Gen8.6 IT OLED production facility, aiming for mass production by 2026. Located at the Asan Campus, the project involves an investment of 4.1 trillion won ($3.4 billion), expanding OLED glass substrates from the Gen6 to a larger Gen8.6 size, tripling capacity.
But now we have a new wrinkle, a anti-China administration that has just been voted in, and a great deal of trade uncertainty to come. Will it be a reprieve from the pricing pressures of Chinese display makers? How will Apple react now?
The Samsung Brand Resonates
Samsung Electronics reported steady growth in Q3 2024, with Samsung Display Corporation (SDC) and mobile and TV divisions driving their sales across premium market segments. The company’s focus on high-value products, particularly in OLED displays and AI-enabled devices, is shaping its strategy as it looks toward the close of the fiscal year.
SDC saw strong demand in its OLED mobile display segment, buoyed by recent smartphone launches, though competition pressured profit margins. The large display sector continued to gain momentum as more high-end TV manufacturers embraced OLED technology. Samsung’s QD-OLED technology, in particular, has helped secure a significant share in the premium TV segment, according to the company. Looking ahead, Samsung plans to tap into the growing OLED demand across IT and automotive sectors, as it seeks to diversify its offerings.
For TV sales, Samsung’s Visual Display (VD) division reported both YoY and QoQ improvements, driven by an increased focus on QLED, OLED, and large-format screens. Although overall TV demand grew QoQ due to seasonal factors, YoY demand saw a slight dip following an earlier boost from global sporting events. The company is now gearing up for a year-end demand spike, enhancing collaborations with major retailers and integrating advanced AI capabilities into its TV lineup to position them as smart home hubs via its SmartThings platform.
In the mobile sector, global demand for smartphones showed modest improvement, influenced by global inflation concerns impacting consumer spending. However, Samsung’s new releases in its flagship smartphone range, including foldable models and the Galaxy S24 series, delivered substantial QoQ revenue and profit growth, according to the company. Sales efforts focused on premium models, contributing to near double-digit profit margins despite increased production costs. Tablets and wearables also performed well, with Samsung zeroing in on high-end consumer segments to sustain growth.
Samsung anticipates a slight uptick in global smartphone demand as Q4 progresses, spurred by seasonality. Competitive pressures are expected to intensify, especially in mass-market segments in emerging regions, but Samsung’s strategy to strengthen sales in AI-powered smartphones and expand its Galaxy ecosystem aims to capture high-value opportunities.
Samsung Electronics revenues hit record levels but it continues to suffer in its semiconductor business, falling behind competitors even as AI drives ever greater demands for chips. The demand for high performance memory chips is helping the DS division is helping to prop up the division’s numbers for now.
| (USD billions) | Q3 2023 | Q2 2024 | Q3 2024 |
| Total | 49.84 | 54.77 | 58.49 |
| DX | 32.55 | 31.11 | 33.27 |
| MX / NW | 22.18 | 20.25 | 22.57 |
| MX | 21.63 | 19.7 | 22.17 |
| VD / DA | 10.14 | 10.66 | 10.46 |
| VD | 5.41 | 5.58 | 5.61 |
| DS | 12.16 | 21.12 | 21.65 |
| Memory | 7.79 | 16.08 | 16.46 |
| SDC | 6.08 | 5.66 | 5.91 |
| Harman | 2.81 | 2.68 | 2.61 |
| (USD billions) | Q3 2023 | Q2 2024 | Q3 2024 |
| Sales | 49.85 | 54.76 | 58.48 |
| Cost of Sales | 34.48 | 32.75 | 36.29 |
| Gross Profit | 15.37 | 22.01 | 22.19 |
| SG&A Expenses | 13.57 | 14.28 | 15.39 |
| R&D Expenses | 5.18 | 5.95 | 6.56 |
| Operating Profit | 1.8 | 7.72 | 6.79 |
| Other Non-Operating Income/Expenses | 0.03 | 0.05 | 0.12 |
| Equity Method Gain/Loss | 0.19 | 0.15 | 0.13 |
| Finance Income/Expenses | 0.89 | 0.65 | 0.58 |
| Profit Before Income Tax | 2.91 | 8.58 | 7.63 |
| Income Tax | -1.41 | 1.29 | 0.16 |
| Net Profit | 4.32 | 7.28 | 7.47 |
