Samsung earnings ()
Samsung Electronics Co., Ltd. (SSNLF), the South Korean conglomerate, is a well-established name in the technology space. One of the most valuable brands in the world, Samsung is embracing advanced technologies, such as the Internet of things (IoT), Virtual Reality, Big Data and Artificial Intelligence (AI) to stay ahead of the curve in delivering next-generation products and services, be it smartphones, chips, payments, or autonomous vehicles.
Internet of Things
Samsung recently announced the unification of its IoT services—SmartThings, Samsung Connect, and ARTIK—into a united IoT platform: SmartThings Cloud.
Samsung’s SmartThings Cloud will provide a single, powerful cloud-based hub, enabling secure interoperability and services for developing commercial and industrial IoT solutions such as connected cars, smart homes, smart farms and energy systems. The worldwide market for IoT is anticipated to reach $185.9 billion by 2023 from $16.3 billion in 2016.
Virtual Reality
Samsung has been among the early investors in the Virtual Reality (VR) segment; it introduced Gear VR nearly three years. Today, about two-thirds of the worldwide headset shipments comprise of Samsung's Gear VR and Google's Daydream View (during Q12017).
To further boost its VR initiative, Samsung recently unveiled a range of leading VR services, including Samsung VR, Internet VR, PhotoCast VR, VRB Foto, Black River Studios and Gear VR Framework. IDC projects the total spending on AR/VR products and services to soar $215 billion by 2021, up from $11.4 billion in 2017 achieving a compound annual growth rate (CAGR) of about 113% along the way.
Augmented Reality
Samsung is making a swift move in the Augmented Reality (AR) space as well. To bring the best AR experiences to its users, Samsung has partnered with Google (GOOG, GOOGL) to extend the ARCore platform to more Galaxy devices (S8, S8+ and Note8).
The AR market, which was valued at $2.39 billion in 2016, is expected to touch the $61.4 billion mark by 2023. “While today we experience AR on our phones, at Samsung, we believe that tomorrow, this will go beyond smartphones,” sums the company’s commitment towards AR technology.
Artificial Intelligence
Samsung is keeping pace in the AI space as well. In early 2017, the electronics giant introduced Bixby as “a new intelligent interface on its devices.” While Bixby begins its journey with smartphones, its upgraded version Bixby 2.0 is being made available on a variety of devices such as the Smart TV. Samsung is confident that, “Bixby will sit at the center of consumers’ intelligent ecosystem.”
5G
Going a step further, Samsung is working to push the industry towards commercial 5G and recently hosted the Annual Silicon 5G Summit. Samsung expects to see the first commercial 5G applications begin to roll out over the coming year.
Autonomous Technology
In mid-September, Samsung set up a new $300-million fund—Samsung Automotive Innovation Fund—to focus on connected cars and autonomous technologies. Its first strategic investment will be in TTTech. In addition, a new ADAS Strategic Business Unit (SBU)—HARMAN SBU—has been established under its connected car division.
In what is considered a highly strategic move towards being part of the fast-growing market, which incidentally is slated to grow to more than $100 billion by 2025, Samsung completed the acquisition of Harman International Industries in March 2017.
Smartphones
With its well-balanced portfolio of smartphone offerings, Samsung continues to retain its leadership position in the worldwide smartphone market. During Q22017, Samsung dominated 22.5% of the smartphone market, despite being hit hard by problems in Galaxy Note 7. Samsung’s market share is more than the combined share of Apple and Huawei (12.1% + 9.8%), which hold the second and third spot based on Q2 figures.
Memory Chips
Samsung is the biggest maker of memory chips. In July 2017, Samsung’s new semiconductor fabrication line in Pyeongtaek began production and shipment. This new facility will focus on Samsung’s fourth-generation V-NAND (64 layers) and will be receiving a total investment of KRW 30 trillion to expand its semiconductor fabrication capacity by 2021. At the same time, Samsung will be investing more than KRW 37 trillion in its global production facilities. Samsung believes that this investment is needed to support the changing trends in the technology space.
Overall, Samsung is making the right moves in the form of innovation and investments to ensure that it stays on the top spot across its business segments. However, it remains hard to invest in as it does not trade as an ADR on prominent exchanges such as NYSE or Nasdaq in the U.S. (Here are some ways to invest in Samsung, however). Samsung is set to announce its Q32017 earnings on October 31, 2017.
The author has no position in any stocks mentioned. Investors should consider the above information not as a de facto recommendation, but as an idea for further consideration.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
