The U.S. ban on Huawei has negative impact on Samsung’s business


It’s interesting how in the world of technology limes are blurring and companies are competing in one segment, and depend on each-other in another. According to recent reports citing analyst predictions, a direct effect of the U.S. ban on Huawei will have a rather negative impact on Samsung’s chip business.

Samsung is the world’s first smartphone manufacturer and largest supplier of DRAM and NAND memory chips. Interestingly, one of its most important clients is the world’s second largest smartphone manufacturer — with plans to dethrone Samsung — and a drop in memory chip shipments to Huawei leaves a scar on Samsung’s chip business.

The quarterly result would be the South Korean firm’s lowest in nearly three years, with the prospect of an earnings recovery still some quarters away as a period of oversupply continues unabated amid a broader slowdown in tech markets — analyst cited by CNBC

According to Refinitiv SmartEstimate, on Friday, when Samsung is set to reveal its second-quarter results, the company will announce a 60% decline in April-June operating profit at 6 trillion won ($5.14 billion). The estimation comes from 29 analysts and they all seem to agree, more or less, that Huawei, and the U.S. ban imposed upon the company is the culprit.

You can read the entire report at the source link below.

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