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| IPhone 12 series and Galaxy Note 20 series © News1 |
Domestic smartphone makers have entered a’breathing’ in the fourth quarter of 2020. Apple’s iPhone 12, a strong competitor in the global smartphone market, seems to have had a big impact.
On the 8th, Samsung Electronics and LG Electronics announced their provisional results for the fourth quarter of 2020. Samsung Electronics recorded sales of 61 trillion won and operating profit of 9 trillion won in the fourth quarter. LG Electronics’ fourth quarter sales were 18,782.6 billion won and operating profit of 6570 billion won.
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| © News1 |
◇ Samsung IM, operating profit decline, LG MC’s deficit will return to 200 billion won
According to the stock information company F&Guide, Samsung Electronics’ 4Q 2020 operating profit forecast is 9.3 trillion won, and LG Electronics’ 4Q operating profit forecast is 6198 billion won. Compared to the market forecast, Samsung Electronics is slightly lower and LG Electronics is slightly higher. .
Although preliminary results by division are not disclosed, both the IM (IT&Mobile) division (Samsung Electronics) and MC (Mobile&Communication) divisions (LG Electronics), which are in charge of the mobile division of the two companies, are expected to be relatively slow in the fourth quarter of last year.
In the stock market, Samsung Electronics’ IM division is expected to record sales of 2,136 trillion won to 248 trillion won and operating profit of 2.46 trillion won to 2.95 trillion won in the fourth quarter of 2020. LG Electronics’ MC division’s fourth quarter sales are estimated at 1.4 trillion won to 1.56 trillion won and operating losses of 187 billion won to 230 billion won.
The IM division’s operating profit was 4 trillion won, resulting in a 40% decrease in operating profit compared to the previous quarter, which recorded an earnings surprise, and the MC division’s operating loss is expected to return to 200 billion won, which was significantly reduced in the previous quarter.
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| An invitation to Samsung Electronics’ Galaxy Unpack 2021 to be held on January 14th (local time). The Galaxy S21 is expected to be released. © News1 |
◇Apple sweeps and Korean manufacturers lose effect on new products in the fourth quarter
The 4Q results of such Korean manufacturers seem to have been affected by the popularity of Apple’s iPhone 12, a competitor in the global smartphone market.
In 2020, Apple launched the first 5th generation (5G) iPhone, the iPhone 12, in October. The first ‘5th generation (5G) iPhone’, the iPhone 12, is being popular in the market by sucking up potential 5G phone demand.
On the other hand, Samsung Electronics, which releases new products in the first and third quarters of each year, is in a difficult situation to cope with the iPhone 12, which is less effective in launching new products in 4Q. In the industry, the smartphone shipments of Samsung Electronics in the fourth quarter are expected to be only 60 million to 62 million units, down from the previous quarter.
LG Electronics’ mass premium phone’LG Velvet’ and swivel phone’LG Wing’, which were launched last year, are also expected to decrease sales and increase operating deficits as they did not produce such a performance in the fourth quarter.
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| On the 1st (local time), LG Electronics uploaded an emulator of a rollable phone to the Android developer site so that applications (apps) for rollable phones can be developed. (Provided by LG Electronics) © News 1 |
◇Samsung’s’Galaxy S21′ and LG’s’Rollable’ aim to’rebound’ in the first quarter
However, in the first quarter of 2021, both Samsung Electronics and LG Electronics are waiting for an element to aim for a’rebound’ in profitability.
Samsung Electronics has normally held an unpack schedule in February to unveil its flagship smartphone’Galaxy S21′ series in the first half of the year, but this year pulled it to January 15th (Korean time). This is interpreted as a head-to-head strategy to place’match-fire’ in the popularity of the iPhone 12.
LG Electronics also aims to turn the MC division into a quarterly profit this year.
In particular, LG Electronics is expected to release a new’form factor’,’LG Rollable’, a rollable phone in the first half of this year. It is expected that the rollable phone will be unveiled for the first time at the’International Home Appliances Fair (CES) 2021′, which will be held from the 11th (local time) in the United States.