Samsung forgets Galaxy worries, surprises analysts with big numbers

Internal ding-dong between phones and chips continues

Despite the Galaxy 6 and its kin – Plus, Edge, Edge Plus – tanking, Samsung Electronics has posted impressive numbers for the third quarter, substantially higher than analysts had predicted, leading to a jump in the share price.

The Korean tech giant has forecast profit for July, August and September will be 7.3tn won (£4.1bn), as opposed to 4.1tn won (£2.3bn) in the same quarter last year, and 6.9tn won (£3.9bn) in the second quarter of this year.

The numbers are more than eight per cent higher than analysts had forecast, which saw a surge in the Samsung Electronics share price, closing up 8.7 per cent on the Korea Composite Stock Price Index (KOSPI).

A lot of the growth has come from making chips and screens for other companies. Despite the courtroom battles, Samsung is still a major supplier for Apple, which buys its processor chips from both Samsung and TSMC.

The Samsung manufactured APL0898 chip is physically smaller than the TMSC APL1022, which may reflect the use of the same 14nm FinFET process that Samsung Electronics uses for the Exynos 7420, featured in the Galaxy S6 family.

The internal schism between components and phones is magnified by Samsung Electronics starting to sell the Exynos 7420 to other handset manufacturers and saying it was prepared to do the same with the distinctive curved edge screen.

In day to day usability the curve adds nothing to the phone, it’s not a big enough area to provide side buttons as it does on the Note Edge, but in an age where all mobes are black rectangles, it’s a strong identifying feature.

Samsung’s mobile phones are not just fighting a battle against Apple, but against an increasing number of Chinese manufacturers, not least Oppo and Xiaomi, which are growing rapidly. This is the class of customer which the components business is explicitly targeting. How the company prioritises its use of leading edge components is an interesting strategic challenge, but at least this is one the company can control.

Currency movements are outside Samsung’s area of influence and are another reason for the gap between the parts of the electronics business. A weak won benefited components but had little effect on handsets, where pricing is all done in dollars.

With the Christmas quarter being the strongest for handset sales it will be interesting to see how the internal balance pans out between now and in the new year. ®

Other stories you might like

  • Lenovo halves its ThinkPad workstation range
    Two becomes one as ThinkPad P16 stands alone and HX replaces mobile Xeon

    Lenovo has halved its range of portable workstations.

    The Chinese PC giant this week announced the ThinkPad P16. The loved-by-some ThinkPad P15 and P17 are to be retired, The Register has confirmed.

    The P16 machine runs Intel 12th Gen HX CPUs, but only up to the i7 models – so maxes out at 14 cores and 4.8GHz clock speed. The laptop is certified to run Red Hat Enterprise Linux, and can ship with that, Ubuntu, and Windows 11 or 10. The latter is pre-installed as a downgrade right under Windows 11.

    Continue reading
  • US won’t prosecute ‘good faith’ security researchers under CFAA
    Well, that clears things up? Maybe not.

    The US Justice Department has directed prosecutors not to charge "good-faith security researchers" with violating the Computer Fraud and Abuse Act (CFAA) if their reasons for hacking are ethical — things like bug hunting, responsible vulnerability disclosure, or above-board penetration testing.

    Good-faith, according to the policy [PDF], means using a computer "solely for purposes of good-faith testing, investigation, and/or correction of a security flaw or vulnerability."

    Additionally, this activity must be "carried out in a manner designed to avoid any harm to individuals or the public, and where the information derived from the activity is used primarily to promote the security or safety of the class of devices, machines, or online services to which the accessed computer belongs, or those who use such devices, machines, or online services."

    Continue reading
  • Intel plans immersion lab to chill its power-hungry chips
    AI chips are sucking down 600W+ and the solution could be to drown them.

    Intel this week unveiled a $700 million sustainability initiative to try innovative liquid and immersion cooling technologies to the datacenter.

    The project will see Intel construct a 200,000-square-foot "mega lab" approximately 20 miles west of Portland at its Hillsboro campus, where the chipmaker will qualify, test, and demo its expansive — and power hungry — datacenter portfolio using a variety of cooling tech.

    Alongside the lab, the x86 giant unveiled an open reference design for immersion cooling systems for its chips that is being developed by Intel Taiwan. The chip giant is hoping to bring other Taiwanese manufacturers into the fold and it'll then be rolled out globally.

    Continue reading

Biting the hand that feeds IT © 1998–2022