Samsung Electronics is on the right track. Source: Reuters
HB SEOUL. The world’s largest electronics company Samsung is aiming for a record quarter, thanks to the speedy recovery of the technology industry to further growth. For the past quarter, the company estimated on Tuesday its operating result to the equivalent of 3.8 billion U.S. dollars. In particular, the highly cyclical business with DRAM chips, used mainly in computers and consumer electronics, currently booming. The world’s largest producer of memory chips and flat panel TVs is benefiting greatly from its market power. The chip prices could be raised because of the strong demand for computers and the limited capacity of smaller competitors, shared with the Koreans.
Compared with the same quarter last year, Samsung has increased sevenfold its operating earnings, exceeding the expectations of analysts. For the full year, the Asians see so well on the way to a new record profit. Industry experts expect that Samsung continues to grow until fall. "I believe that the result reached in the third quarter of its peak. However, there is the risk that the price of DRAM memory remains high and this dampens the demand growth, "said analyst Song Myung-sup, HI Investment & Securities.
During the rest of the electronics segment through global economic programs and promising new consumer devices such as Apple’s Tablet computer iPad already growing concerns before the crash of the recurring memory industry. "It is both in the chip segment and in the LCD field give an over-supply and will reduce the profit," said Robert Jakobsen of the Danish Jyske Bank. In the past, the memory chip sector expanded strongly in the phase of rising demand for their production, leading to fierce price regularly. On the last downhill this shattered the previous Infineon subsidiary Qimonda and Samsung competitor. So far, however, still outweighs the confidence to endorse other industry giants like Sony, Panasonic, Nokia and Intel, the upward trend.
The Bavarian semiconductor company supplying Samsung with radio chips for a portion of cell phone range. Infineon’s shares rose by midday Tuesday, at about three percent, while shares of Sony fell 0.3 percent. The value of the shares had increased in Seoul in the last five weeks already by almost a fifth. End of the month does the new Samsung chief Choi Gee-sung, the quarterly balance sheet to present in detail. By the end of April put most other technology companies on their numbers.