Lead: foreign media comment on January 26 article, said Samsung plans huge capital expenditure to provide for future growth and further growth. At the same time, Samsung’s most competitors are cutting capital expenditure budget, hoping to reverse the business decline. Samsung and its competitors will further widen the gap.
The following is the text of the article:
Samsung (microblogging) enables electronic scale capital expenditure dwarfs many of its competitors, helping the company establish the world’s largest TVs, memory chips and flat-panel maker status. The company’s capital spending this year, a record size of the budget will be further pressure to competitors.
Samsung Group said this month that the Group and its subsidiary plans capital expenditure budget of 47.8 trillion won ($ 42 billion), mainly for new product development and plant upgrade. Data show that Samsung’s total capital expenditure in 2010 than Sony, Intel (microblogging) and the Cisco three company’s capital expenditures combined.
Samsung’s sales last year reached record levels, profit levels doubled in five years. In strong support of capital spending, the company will be able to achieve further growth, and the competitors far behind. At present, many competitors are facing a loss situation, want to diversify the business into higher-margin mobile phones and tablet PCs special semiconductors, and the success of these areas is an important area of Samsung.
Taurus Investment Securities analyst, said Kim Hyung-sik, Samsung in the technology industry has a strong power, the gap between the company and other competitors will continue to expand, especially with the gap between the memory chip maker.
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Samsung Group up to 40 trillion won in total capital expenditure budget will invest most of its Samsung Electronics, which the semiconductor and display businesses will get most of the capital the budget.
Samsung’s sales, profits and capital expenditure budgets are to increase, in sharp contrast to the situation in Asia is quite detrimental to competition. Among them, the Japanese chip maker Elpida ending in September, has been four consecutive quarters of losses, but also faces debt deadline for the pressure. Data revealed that the total loss in the past three years, $ 14 billion.
Sony’s TV business is a loss for seven consecutive years, the company expects overall business loss would be the fourth consecutive year. Prior to the weak TV demand has led to a restructuring of the company last month agreed to withdraw from the Sony and Samsung flat-panel set up a joint venture.
Shinhan BNP Paribas Asset Management fund manager Lin Cheng-jae said that Samsung’s strategy is to take full advantage of its strong financial strength, expanding the gap between competitors.
LG on January 13, said this year’s budget will cut capital spending 15 percent, citing a possible slowdown in consumer spending in Europe and America. Chip foundry TSMC on January 18, said this year’s investment in equipment budget from last year’s $ 7.3 billion to 60 billion dollars.
data show that Samsung capital spending in 2010 was 187 million, compared to Intel the same year, capital spending is $ 5.2 billion.
As of September 2010 fiscal year, Apple is a $ 2 billion capital expenditure. The company’s first-quarter profit more than doubled its holdings of cash and investments on hand the amount of more than 97 billion U.S. dollars. Apple will most manufacturing operations are outsourced to other companies, and therefore does not require a high capital expenditure.
Samsung shares gained 11 percent last year, presumably under the Apple stock rose 26 percent, while Sony has fallen 53%.
mobile market share
Samsung may announce tomorrow details of capital expenditure plans. The company’s chairman Lee Kun-hee said this month, even if the global economic slowdown, but Samsung will continue to expand investment and recruit staff in order to maintain industry leadership.
scale of capital expenditure over the past Samsung has helped to consolidate the industry leading position. Research firm Strategy Analytics data show that last year’s third quarter, Samsung’s global mobile phone market share from 20.9% to 22.6% students, and Nokia (microblogging) share fell to 27.3% from 32.3%. Taurus, said analyst Kim Hyung-sik, Samsung end of the year may exceed the total sales of Nokia mobile phones.
in the DRAM chip industry faces oversupply and price drop in pressure of the occasion, Samsung Semiconductor is through increased investment to diversify its business operations. Samsung, Apple is currently the largest customer, and in the field of smart phones and tablet PCs is Samsung’s biggest competitors.
Shinhan BNP Paribas, said fund managers Lin Cheng-Jae, Japan and Taiwan memory chip makers are facing a decline almost. In mobile phones, Samsung and Apple led the coming era.
Analysts expect Samsung’s chip business in the logic of this year’s investment may double to a record 80,000 won. The business produces Apple-designed A4 and A5 processor.
Samsung has achieved a wide range of products into smart phones, tablet PCs and server-specific chips. Last year, a report in October, Samsung DRAM chip dedicated sales volume is equivalent to an ordinary PC DRAM chips twice. The higher-margin specialty DRAM chips.
other business, analysts expect Samsung’s OLED business may invest in the 7 trillion won to expand OLED production. At present, such as smart phones by Samsung Galaxy driven applications, the market demand for OLED screen on the rise.
analysts said the industry’s most important factor is to invest early, setting up the dominant position, in order to establish barriers to entry for competitors. Samsung has a strong financial strength, so you can do this. (Leisurely)
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