Samsung hints at chip recovery, shrinking phone market

samsung chip recovery shrinking market

The smartphone giant, Samsung Electronics has recently said that sales of smartphones and consumer electronics would be badly hit due to the ongoing coronavirus outbreak. Adding further, it said that the demand for chips from data centers would fuel the recovery of memory chip markets.

Sharing his opinion about the same, president of Samsung’s mobile and network business, Koh Dong-jin said: “The global smartphone market was expected to turn to growth this year, but with virus showing signs of being prolonged, the smartphone market is contracting. But 5G smartphone demand is expected to rise.”

According to Chief Executive Kim Ki-nam, the chip market, which forms about half of Samsung’s operating profit, would see a growth in demand while the smartphone market would shrink after a drop last year.

Kim said that the coronavirus and U.S.-China trade disputes were casting a shadow over the South Korean tech giant’s viewpoint, whose Galaxy smartphones compete with Apple’s iPhones for global dominance.

Other chipmakers like Broadcom have either cut or pulled their sales outlook due to disruptions caused by the coronavirus outbreak, but global leader Samsung said it expected investments from data center firms and new opportunities in areas such as 5G wireless networks and automobiles to increase chip sales in 2020.