Samsung component sales to suffer in second half, exec says

By on Jul 4, 2011 at 3:35 PM
Business July 4, 2011

Last week, Samsung announced that it will combine its LCD and semiconductor businesses. The move is expected to conceal poor LCD sales, but the head of the new combined business, Kwon Oh-hyun, has said that he expects the overall performance to falter during the second half of the year. “In the past, the semiconductor market tended to be weaker in the first half and stronger in the second half, but for this year, it is likely to remain flat throughout the latter half,” Kwon said according to The Wall Street Journal. Samsung typically sees 70% of its operating profits and 44% of its revenues from the combined sales of its semiconductor and LCD products. The South Korean firm is currently locked up in multiple legal battles with Apple — the largest buyer of its LCD products — and rumor has it the Cupertino-based firm is considering dropping Samsung as a supplier.

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12 Comments

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  • Anonymous

    Darn you Apple! Darn you all to hell!!!!

    • Anonymous

      1) Apple hired them.  2) Samsung made duplicates with their names on it and selling a few million a month.  3) Apple drops them for copying their work.  4) Why are we mad at Apple again?

      • Anonymous

        Because my friends who are mainly Goofans (aka Apple Haters) will beat me up and stop talking to me if I don’t hate Apple. We are told to believe that Apple is for dumb people and that Apple builds terrible and sub-quality products. Any questions?

  • Tdk

    If Samsung wants to shoot itself in the foot let them. They’re the one that started these lawsuits If Apple drops them as a supplier Samsung will suffer more than Apple!

  • Anonymous

    I’d drop any company blatantly ripping off what they build for me like a rock.  I’m sure every other company is a little skeptical of sending anything to them they could copy as well.  Are there phone and tablet sales strong enough to offset all their lost business?  Sounds like they are not. 

  • Anonymous

    LOL. yeah samsung should cancel all orders with apple. Show em whose boss. Hahahahha. Apple will rule the world  true story™©®

  • Anonymous

    Should be very interesting to see how that all turns out. Wow.

    http://www.anon-toolz.tk

  • Tom

    Go back a couple of months. Isn’t this an after effect of Apple putting in a billion or so to help Toshuba build a LCD plant ( for iPhone and presumably possibly also retina displays for an iPad at some point (se a recent Scoble text for the quantum dot later that’s coming)

    • Anonymous

      Don’t forget TSMC or something to build their SOCs for their iPhone/iPads.  Samsung might go the way of Sony in the next couple of years.

  • Anonymous

    70% of Samsung’s profits come from component sales.  Let’s say for the sake of argument that the rest of their profits come from the sale of Galaxy S and Tab devices (30%, I know it is much much less than that).  f

    Apple provides a significant portion of 70 freaking % of their profit, and these Korean CEOs are business-unsavvy enough to jeopardize that by playing copy-the-Apple-iDevice games with the 30% profit sector of their company?

    WTF.  Mega-FAIL.

    • GeoX

      Sam sung his profits “goodbye!”

      • Anonymous

        And the worst part for Samsung is that Apple has no qualms about burning bridges with rivals.  Once Samsung loses Apple, they’ll never get them back. They way the current trade dress lawsuits are escalating, it seems that there is no way back for Samsung.

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