We’re seeing some smartphone OEMs losing money these days, but Samsung certainly isn’t one of them. Reports say they shipped over 79 million smartphones during the second quarter of this year and that the Galaxy S8 was the best selling Android device for the quarter as well. Thankfully, the company isn’t known for just sitting on their cash reserves like others do, and they’re using the profits to invest in key areas that should benefit them in the long run.
In November of last year we learned that Samsung is investing in reducing the bezels of our smartphones and we’ve been seeing these results in the Galaxy S8 and the upcoming Galaxy Note 8. They’re continuing to invest in their OLED production capabilities with a $2 billion deal being finalized at the start of this year. The company is even working on doubling the production capabilities of their smartphones that are manufactured in India.
Lately, we’ve been seeing a growing demand for NAND flash memory in the smartphone industry as well as others. Samsung is aware of this and will now be investing $7 billion over a 3-year period on its plant in Xi’an. Samsung has their hands in a number of industries (not just smartphones) and a ton of different products use NAND memory these days thanks to its performance, small footprint, and low power usage compared to other memory options.
So if you’re using a microSD card in your smartphone, or a USB flash drive in your computer, you’re using NAND memory in those products. Q1 of this year showed Samsung with 41% of the NAND market and their biggest competitor here is Toshiba with only 18%. Samsung wants to hold onto this market lead and even increase it since demand is growing and this big investment will help them do just that.
Source: Bloomberg
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