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Why the Outlook Is Bright for Samsung Electronics

April 17, 2017 05:14|April 17, 2017 05:14
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Samsung Electronics is expected to enjoy a record-breaking year not only this year but also next year. Unlike in the past, Samsung is showing an improved performance across the entire spectrum of its business divisions.


Some investors could remain cautious, believing that the improvement in Samsung's performance is led mainly by its memory chip division which is now enjoying an unprecedented sales-to-operating profit ratio.


However, it should be pointed out that Samsung's non-memory (system LSI) division also entered the stage of making a positive turnaround. The non-memory unit, which relied on specific customers like Apple in the past, succeeded in diversifying its client base, with its positive performance likely to last relatively long.


In addition to the semiconductor division, Samsung is also gaining traction in the home electronics business. In the global home electronics market, the latest trend is the convergence of telecom technologies with household electronics items. In other words, the competitiveness of companies like Samsung that have both strong capabilities in telecom and home electronics technologies, would draw more attention.