"Huawei US Sanctions Expected to Boost Samsung Electronics Smartphone Sales"

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[Asia Economy Reporter Minji Lee] As uncertainties in Huawei's smartphone sector increase due to U.S. sanctions, there is a forecast that Samsung Electronics' business environment could improve.

On the 21st, Eugene Investment & Securities predicted that Samsung Electronics' smartphone sales have entered a recovery phase around April to May. Smartphone shipments in June saw a significant increase. Kyungtak Noh, a researcher at Eugene Investment & Securities, explained, "Samsung Electronics' IT & Mobile Communications Division is expected to show results exceeding market expectations due to cost reductions from offline store shutdowns and sales recovery centered on mid- to low-end models," adding, "The Huawei issue will have a positive effect on Samsung Electronics."

Recently, Huawei reportedly requested its overseas partners to postpone the production timing of components. This is due to disruptions in some component supplies following the strengthening of U.S. sanctions. Huawei outsources most of the semiconductors it designs to the Taiwanese foundry company TSMC, but due to U.S. sanctions, TSMC has currently stopped accepting new orders from Huawei.

In April, Huawei recorded the world's number one monthly global smartphone sales for the first time following the resumption of economic activities in China, but its global smartphone sales this year are expected to decline compared to last year. The company's smartphone sales this year are estimated to be between 170 million and 190 million units, down from 240 million units last year. The mass production of the flagship Mate model, scheduled for release at the end of the year, is also being delayed.

Researcher Kyungtak Noh stated, "U.S. sanctions continue, and there are many obstacles to expanding overseas sales, such as procurement issues for key components like semiconductors and the lack of Google mobile services," adding, "Dependence on the domestic market will inevitably increase."

He further diagnosed, "Samsung Electronics is expected to record relatively strong sales in regions with high demand for mid- to low-end models such as Europe, Asia, and Latin America," and said, "The strategy to expand the share of Samsung Electronics' smartphone supply chain remains valid."

This content was produced with the assistance of AI translation services.