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Samsung Electronics is expected to fare better than other major smartphone makers as rising memory prices squeeze the global handset market, while the same supply shortage is supporting its semiconductor business, The Korea Herald reported, citing a report by Japanese brokerage Mizuho Securities.
The report forecasts global smartphone shipments at 1.15 billion units in 2026, down 9 per cent from a year earlier. In contrast, Samsung's shipments are expected to remain broadly flat at 240 million units. The brokerage said Samsung and Apple are relatively well positioned to secure memory supplies and have greater exposure to flagship smartphones. This could give the two companies more room to absorb higher component costs or pass them on through higher prices. The global smartphone market has been facing increasing pressure from shortages of DRAM and NAND memory. The news report noted that Counterpoint Research had reported an 11 per cent year-on-year decline in global smartphone shipments in the second quarter, while Samsung's shipment share increased to 24 per cent from 20 per cent a year earlier. The impact of higher memory costs has been strongest on entry-level and mid-range smartphones, where memory accounts for a larger portion of production costs, the report said. Samsung's semiconductor business is meanwhile benefiting from higher memory prices and strong demand for chips used in artificial intelligence servers. Its Device Solutions division, which includes the memory business, recorded an operating profit of 89.2 trillion won (USD 66.4 billion) in the second quarter, according to the news report. However, Samsung's Mobile eXperience and Networks businesses reported an operating loss of 700 billion won (about USD 521 million) during the quarter, with the company citing higher component costs across the industry. Samsung plans to focus its second-half smartphone sales on flagship products, including the Galaxy Z8 and S26 series, while increasing the share of premium devices, the report said. The company's display business could also benefit from Apple's entry into foldable smartphones. Mizuho has lowered its estimate for production of Apple's first foldable handset this year to 4.1 million units from 5.8 million, partly due to delays linked to unresolved hinge issues. Despite the slower expected ramp-up, Mizuho expects Samsung Display to supply 8 million-8.5 million foldable panels during the year, according to The Korea Herald. (ANI)
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