Feeds

Chip, Chip hooray at Samsung outweighs slack gadget numbers

Helps to be a company that actually makes difficult stuff

Remote control for virtualized desktops

Samsung is on course for another year of record profits as an improved chip market makes up for its slowing smartphone business.

A survey of 45 analysts by Thomson Reuters I/B/E/S estimated an operating profit for Samsung this year of 38.5 trillion won ($35.85bn), up a third from its 29 trillion won ($27bn) haul in 2012.

Although the Korean firm's mobile sales growth is definitely slowing, this year's profits will be bolstered by the rallying prices in the global chip market. Chipmakers like Samsung have been reducing capacity and investing in the new lines of chips used in smartphones and fondleslabs, leading to a recovery in the business.

DRAM chip prices jumped nine per cent in the second half of September, further boosted by a fire at a plant in China owned by world number two memory firm SK Hynix. UBS reckons that SK Hynix chip supplies would fall by 14 per cent at the end of the year, putting the market into a supply deficit of around seven per cent.

Meanwhile, Samsung's battery subsidiary Samsung SDI is in talks with Elon Musk's electric carmaking firm Tesla to become an additional supplier. Both companies have confirmed to Reuters that they're in talks to partner up as Tesla looks to expand, but wouldn't elaborate on details.

However, some folks close to the talks have whispered that the deal is in the final stage and would see Samsung SDI providing batteries for the Model X, a new more affordable car Tesla is hoping to add to its lines next year. Another source, however, suggested to Reuters that Samsung's batteries are not as competitive as those made by Tesla's primary supplier, Panasonic.

Tesla could probably do with some good news on batteries, since it's currently in the middle of the latest battery fire incident. A Model S EV, supposedly one of the safest cars on the road in the US, suffered a serious fire yesterday, sending shares in the firm down over four per cent.

The word from Samsung can be read here. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Musicians sue UK.gov over 'zero pay' copyright fix
Everyone else in Europe compensates us - why can't you?
Bladerunner sequel might actually be good. Harrison Ford is in it
Go ahead, you're all clear, kid... Sorry, wrong film
I'll be back (and forward): Hollywood's time travel tribulations
Quick, call the Time Cops to sort out this paradox!
Megaupload overlord Kim Dotcom: The US HAS RADICALISED ME!
Now my lawyers have bailed 'cos I'm 'OFFICIALLY' BROKE
Forget Hillary, HP's ex CARLY FIORINA 'wants to be next US Prez'
Former CEO has political ambitions again, according to Washington DC sources
Euro Parliament VOTES to BREAK UP GOOGLE. Er, OK then
It CANNA do it, captain.They DON'T have the POWER!
prev story

Whitepapers

10 ways wire data helps conquer IT complexity
IT teams can automatically detect problems across the IT environment, spot data theft, select unique pieces of transaction payloads to send to a data source, and more.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
10 threats to successful enterprise endpoint backup
10 threats to a successful backup including issues with BYOD, slow backups and ineffective security.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Website security in corporate America
Find out how you rank among other IT managers testing your website's vulnerabilities.