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Samsung Results -2

07:49 30-Jul-15


Samsung posted second quarter results last night.  Although there was mild quarter over quarter growth, the company failed to rebound to the performance of prior years.  The market might make this out as a negative for INVN and OLED, but I do not.  I've been talking about the increasing stagnation in smart-phones for quite a while; that will only rebound with the introduction of flexible electronics, probably in 2017.

The two divisions of concern are IM (IT & Mobile) for INVN and DP (Display Panels) for OLED.  In, IM the profit number was particularly impacted by increased marketing of the S6, but the overall sales drop was slight, and had more to do with mid and low-end units.  As a result, I expect the actual affect on InvenSense to be minor if any.

In DP, the picture is less clear.  While sales were a little better, high end TVs helped results, and Samsung is still in the midst of efforts to increase its third party AMOLED mobile screen sales.  QDTVs are expected by some to continue to offer high-end competition to AMOLED models.  Thus, what the actual impact should be on OLED shares is hard to determine.  We'll only know more about this and the LG deal when the company reports on Thursday, next week.