Feeds

Chip, Chip hooray at Samsung outweighs slack gadget numbers

Helps to be a company that actually makes difficult stuff

Eight steps to building an HP BladeSystem

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. ®

Mobile application security vulnerability report

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.