[THE INVESTOR] Samsung Electronics said on Jan. 31 that it is ready to overcome difficult headwinds that will likely be caused by the lower-than-expected sales of Apple’s iPhone X.
The Korean tech giant is the sole supplier of the AMOLED displays used for the latest iPhone.
“It is hard to give specific details, but we have been trying to diversify our clients and reduce reliance on a certain customer to build a healthy portfolio,” said a Samsung executive on a conference call in the morning, answering to a question on the potential impact of the disappointing iPhone X sales.
“The company’s (display) business will not be affected much by a certain customer,” the Samsung official added.
Apple, Samsung’s archrival as well as main client for the electric components, including the display, has been hit by the sluggish sales of the iPhone X, which was released last October. The US company has recently decided to halve the production target of the phone for the first half to 20 million.
Samsung also anticipated profits from the AMOLED business will decrease in the first quarter this year due mainly to low demand and high competition.
According to Samsung’s earnings report for the last three months in 2017, the company posted 15.15 trillion won (US$14.15 billion) in operating profit with its revenue standing at 65.98 trillion won.
During the fourth quarter, the chip business earned 10.9 trillion won in operating profit, accounting for more than 65 percent of the entire quarterly operating income. The smartphone business posted an operating profit of 2.42 trillion won, down 3.2 percent from a year earlier.
Overall, the company posted a record annual operating profit and sales at 53.65 trillion won and 239.58 trillion won, respectively.
By Kim Young-won (firstname.lastname@example.org