According to Hong Kong's "South China Morning Post" website on April 27, cited by Bloomberg News, informed sources revealed that Samsung is currently negotiating with Apple to become the exclusive display supplier for its new iPhone for sale next year. The new iPhone display is thinner, brighter and more power efficient than the currently used display. If it is negotiated, Samsung needs to invest a lot of money in the development of new technology capacity.
The report said that if you can sign an exclusive supply agreement with Apple's OLED display - South Korea's "Maeil Business" (Maeil Business) initially reported that Samsung will be expected to reverse the shrinking market share of its smart phone market And boosted the company's revenue and profits. The consumer electronics giant once warned in January that the year 2016 is bleak, and once it signs an agreement with Apple, the situation will change. Chinese smart phone manufacturers will also upgrade their product technology in order to remain competitive.
“At first it seemed like a huge investment risk, but it will ultimately generate a lot of returns,†said Greg Roh, an analyst at HMC Investment SecuriTIes in Seoul. “Once Apple decides to use the new display, other manufacturers will have to follow suit.â€
South Korea's "Daily Economic News" quoted unnamed sources as saying that Samsung's display business unit Samsung Display will spend at least 10 trillion won ($8.7 billion) to boost OLED production capacity. Apple sold more than 231 million iPhones last year, while Samsung Display's monthly output is about 3 million. The production capacity has to increase by at least six times to keep up with Apple's footsteps.
Samsung released its 2016 first quarter results forecast. According to the preview, Samsung's sales in the first quarter of 2016 will reach 490,000 won (about 43.3 billion US dollars) due to sales of Samsung S7, which is a significant increase from the 471,000 won (about 40.7 billion US dollars) in the same period last year.
As for the comprehensive profit, Samsung is expected to reach 6.6 trillion won (about 5.7 billion US dollars), an increase of 10.45% over the same period last year. This is also more than the 5.6 trillion won expected by analysts.
Analysts believe that Samsung's operating profit has exceeded expectations significantly, because the new Samsung S7 series flagship global hot sales, it is said that its shipments reached 10 million last month, exceeding the previous forecast of 7 million.
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