Samsung: Fiscal 3Q19 Financial Results

Samsung Electronics reported financial results for the third quarter ended September 30, 2019.

The huge Korean company records global sales of 62.00 KRW trillion for the quarter compared to 65.46 KRW trillion one year ago or -5% with comfortable but declining profits.

Along its multiple activities (mobile, TV, home electronics, home appliances, etc.), it is involved in components representing a small part of sales.

For NAND and SSD where it is the worldwide leader, the company didn’t reveal revenue but gave some indications on these businesses.

For NAND, demand showed stronger growth than expected driven by new smartphone launches and continued trend toward higher density memory, as well as increased adoption of SSDs for PCs and expansion of high-density storage for server customers.

For 3FQ19, NAND bit growth came in at high teens. While ASP declined mid-single digit, the firm expects for 4FQ19 to see NAND market demand growth to be low-single digit and we will be in line with the market. And for FY19 it sees NAND market demand to be high 30%.

For NAND, customers becoming increasingly aware of a price bottom lead to better than expected the demand growth backed not only by launch of new smartphones and a continuing trend toward the high density, but also by increasing SSD adoption in pieces and expanded high density storage from server customers as price elasticity kicked in.

NAND sales to data centers expanded for high-density SSD over 2TB.

NAND bit shipments grew approximately 12% quarterly with ASPs declining around 5% Q/Q, according to Trendfocus.

Samsung will concentrate on stably ramping up production and achieving output of 1Y-nano and sixth gen V-NAND products.

For SSD, the adoption of high density high performance SSD in datacenters is expected to expand and attach ratio for client SSDs is also likely to increase steadily.

For mobile, the high SSD trend is likely to continue considering launches of new high products at model major manufacturers.

The firm sees next quarter NAND industry conditions to keep stabilizing. Demand for high-capacity storage is expected to remain robust and prices are expected to rebound across all applications.

Earnings call transcript