Samsung Sees Smartphone and Tech Devices Demand Recovering in 2024 After Record Chip Loss

Samsung Electronics flagged a continued recovery in memory chips and tech demand in 2024, after reporting a 34 percent drop in fourth-quarter profit despite a memory price rebound as consumer demand remained weak in many businesses.

The world’s biggest maker of memory chips said it expected mobile and PC makers to place more, better chips in devices as use of artificial intelligence expands, while the need to replace older servers would also aid a gradual demand recovery.

“In 2024, the memory business expects the market to continue to recover despite various potential obstacles, including interest rate policies and geopolitical issues,” Samsung said in a statement.

Samsung said operating profit fell to KRW 2.8 trillion ($2.11 billion or roughly Rs. 17,522 crore) in October-December, versus KRW 4.3 trillion (roughly Rs. 26,790 crore) a year earlier.

For the full year, its chip business swung to a record loss of KRW 14.9 trillion in 2023 (roughly Rs. 92,845 crore) from a KRW 23.8 trillion (roughly Rs. 1,48,273 crore) profit a year earlier, hit by an unprecedented downturn caused by weak demand for gadgets that use chips.

However, fourth-quarter losses shrank to 2.18 trillion won in the fourth quarter, lower than every other quarterly loss in 2023 in the business that has historically been Samsung’s cash cow as Chinese PC and mobile makers began to restock chips and memory chip prices rebounded.

Cross-town rival SK Hynix also said last week chip prices would improve this year as clients would need to restock and manufacturers would continue to cut legacy chip production.

Samsung said its memory business would focus on cutting-edge chips including high bandwidth memory (HBM) and server products used for generative AI this year.

Looking to catch up with SK Hynix in memory chips used for generative AI, Samsung held its 2023 capital spending steady on the previous year partly to expand production capacity of those chips, while SK Hynix and Micron cut investment.

SK Hynix was first to develop the latest version called HBM3 and has AI-chip leader Nvidia as a client, but Samsung is working to bring yields up for its HBM3 and future HBM3E products, analysts said.

“Given it said it is set to produce those advanced chips in the first half of this year, the market will be watching for how much of a meaningful presence Samsung can secure this year,” said Ko Yeongmin, analyst at Daol Investment & Securities.

Mobile rebound

The mobile devices business booked a 2.73 trillion won operating profit in the fourth quarter, up from 1.7 trillion won a year earlier on stronger demand for pricier smartphones, more tablet shipments with new product releases and demand for wearable devices during the peak holiday season.

In 2023, Apple ended Samsung’ 12-year run as the world’s top seller of smartphones, snaring a 20 percent market share as demand for premium phones outpaced those of more affordable models, according to a report from International Data Corp.

However, Samsung plans to grow annual flagship smartphone shipments at a double-digit rate this year, helped by its latest premium smartphones with AI functions in a push to challenge Apple.

It also plans to solidify its lead in foldable phones, as competitors like Alphabet’s Google, Motorola and China’s Honor and Oppo increase their foldable offerings.

Among the businesses that remained vulnerable to weak consumer demand were Samsung’s chip contract manufacturing, TV and home appliance units.

Samsung’s share price fell 1.4 percent in morning trade versus a 0.3 percent drop in the benchmark index after earnings results from its customers Microsoft, Alphabet and AMD missed expectations, analysts said.

Its shares rose 42 percent in 2023 on expectations of improved memory chip demand but have fallen about 5 percent year-to-date.

© Thomson Reuters 2024


Samsung launched the Galaxy Z Fold 5 and Galaxy Z Flip 5 alongside the Galaxy Tab S9 series and Galaxy Watch 6 series at its first Galaxy Unpacked event in South Korea. We discuss the company’s new devices and more on the latest episode of Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.
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Google Has Created Digital Data Hegemony, CCI Alleges Before NCLAT

Fair trade regulator CCI on Thursday alleged that Google has created a digital data hegemony and called for a market space with “free, fair and open competition”.

Concluding the arguments of the Competition Commission of India (CCI) before the appellate tribunal NCLAT in the Google matter, Additional Solicitor General N Venkataraman said a market with greater freedom for all players would be in total sync with principles of free competition rather than the ‘walled garden’ approach of the internet major.

On October 20 last year, the CCI slapped a penalty of Rs. 1,337.76 crore on Google for anti-competitive practices in relation to Android mobile devices. The regulator had also ordered the internet major to cease and desist from various unfair business practices.

This ruling has been challenged before the National Company Law Appellate Tribunal (NCLAT).

On Thursday, Venkataraman submitted that Google had used its money-spinning search engine as the ‘castle’ and the rest of the other apps to play the defensive role of ‘moat’. This ‘castle and moat’ strategy is data hegemony, which means a big market player tends to get bigger and bigger while a small entrant struggles to attain a critical mass of users and user data.

According to him, data capture and data deployment are getting exploited and monetised as advertisement revenues. When the choice is the guiding principle of the competition law, Google’s hegemony reduces both choice and competition.

Venkataraman emphasised that implementation of the remedies made by the CCI would go a long way towards having a market with greater freedom for all players, which would be in total sync with the principles of free competition rather than the ‘walled garden’ approach of Google.

The abuse of dominance by Google stands proved in every criteria laid under Section 4 of the Competition Act in terms of mandatory pre-installation, premier placement and bundling of core apps. Such practices result in the imposition of unfair conditions and supplementary obligations, he said.

He also pointed out that the tying of apps had enabled Google to use its dominant position in one relevant market to enter into and protect other relevant markets.

In his submissions, Venkataraman mentioned that large data gateways like GST and UPI, which has data on crores of persons and entities, are run for the public good by public institutions.

However, when it comes to private entities, engaging in a digital business where there is a steady unstoppable flow of data and traffic, the same gets resourcefully calibrated to the sole benefit of these entities. The competition law is one important pillar in the democratisation of data and in achieving the objective of the greatest good for the greatest number, he argued.

The NCLAT started its hearing in the Android matter on February 15, following a direction of the Supreme Court. The apex court had directed the NCLAT to decide the appeal by March 31.

On January 4, a separate bench of the NCLAT issued a notice over Google’s plea, directing it to pay 10 per cent of the Rs. 1,337 crore penalty imposed by the CCI. It had declined to stay the CCI order and put the matter for a final hearing on April 3, 2023.

This was challenged by Google before the Supreme Court, which also declined to stay the CCI order but directed the NCLAT to decide on Google’s appeal by March 31.


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Delhi Police Seized 348 Mobile Phones in Jails in Last 2.5 Months

More than 340 mobile phones have been found in different jails in Delhi in the last two-and-a-half months, official data showed on Thursday.

Director General (Prisons) Sanjay Baniwal told reporters that the jail authorities found 348 mobile phones in two-and-a-half months.

“On Wednesday, the jail authorities conducted a raid in jail number 3 and seized 18 mobile phones and chargers. In the last over two months, the jail authorities have seized 348 mobile phones.

“The jail superintendents have started conducting raids after developing intelligence inside the prisons. Through these actions, the criminal world is now getting a strong message,” Baniwal said.

“We have set 23 targets for 2023. These targets will include making the jails completely phone free and setting up problem redressal system for the inmates. Such type of jammer should be installed so that no one would able to use phone inside the prisons,” the DG said.

When asked about the fact that involvement of insiders helps the inmates get mobile phones inside the prisons, he said, “We admit the involvement of the prison staff in such acts. We have in the past taken stringent action against those found guilty and it will be carried out in future as well.” Baniwal also said that a Memorandum of Understanding (MoU) is also being singed with the Art of Living Foundation to strengthen the mental well-being of the inmates.

The President and the Lieutenant Governor of Delhi have given instructions that arrangements should be developed inside the jails to give skill development training to the inmates so that they may get employment when they go out of the prisons, he said.

Under Deendayal Antyodaya Yojana-National Urban Livelihoods Mission (DAY-NULM), a total of 1,020 jail inmates are getting trained in tourism and hospitality which will end in three months, the DG said.

“We will give skill training to around 1,000 inmates in stitching high-end clothes under Pradhan Mantri Kaushal Vikas Yojana so that if they get out of the jail and become entrepreneur, they would start their business of tailoring through Micro Units Development & Refinance Agency (Mudra) loan,” the DG (Prisons) said.

 


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Smartphone Waste to Constitute Over 30 Percent of World’s Total Mobiles in 2022: Report

More than five billion of the estimated 16 billion mobile phones possessed worldwide will likely be discarded or stashed away in 2022, experts said Thursday, calling for more recycling of the often hazardous materials they contain. 

Stacked flat on top of each other, that many disused phones would rise 50,000 kilometres, more than a hundred times higher than the International Space Station, the WEEE research consortium found.

Despite containing valuable gold, copper, silver, palladium and other recyclable components, almost all these unwanted devices will be hoarded, dumped or incinerated, causing significant health and environmental harm. 

“Smartphones are one of the electronic products of highest concern for us,” said Pascal Leroy, Director General of the WEEE Forum, a not-for-profit association representing forty-six producer responsibility organisations. 

“If we don’t recycle the rare materials they contain, we’ll have to mine them in countries like China or Congo,” Leroy told AFP.

Defunct cellphones are just the tip of the 44.48 million ton iceberg of global electronic waste generated annually that isn’t recycled, according to the 2020 global e-waste monitor.

Many of the five billion phones withdrawn from circulation will be hoarded rather than dumped in the trash, according to a survey in six European countries from June to September 2022. 

This happens when households and businesses forget cell phones in drawers, closets, cupboards or garages rather than bringing them in for repair or recycling.

Up to five kilos of e-devices per person are currently hoarded in the average European family, the report found.

According to the new findings, 46 percent of the 8,775 households surveyed considered potential future use as the main reason for hoarding small electrical and electronic equipment. 

Another 15 percent stockpile their gadgets with the intention to sell them or giving them away, while 13 percent keep them due to “sentimental value”. 

Societal challenge

“People tend not to realise that all these seemingly insignificant items have a lot of value, and together at a global level represent massive volumes,” said Pascal Leroy.

“But e-waste will never be collected voluntarily because of the high cost. That is why legislation is essential.”

This month the EU parliament passed a new law requiring USB Type-C to be the single charger standard for all new smartphones, tablets and cameras from late 2024.

The move is expected to generate annual savings of at least EUR 200 million (nearly Rs. 1,600 crore) and cut more than a thousand tonnes of EU electronic waste every year.

According to Kees Balde, Senior Scientific Specialist at the United Nations Institute for Training and Research (UNITAR), legislation in Europe has prompted higher e-waste collection rates in the region compared to other parts of the world. 

“At the European level, 50-55 percent of e-waste is collected or recycled,” Balde told AFP. “In low-income countries, our estimates plunge to under 5 percent and sometimes even below 1 percent.”

At the same time, thousands of tons of e-waste are shipped from wealthy nations — including members of the European Union — to developing countries every year, adding to their recycling burden. 

At the receiving end, financial means are often lacking for e-waste to be treated safely: hazardous substances such as mercury and plastic can contaminate soil, pollute water and enter the food chain, as happened near a Ghanaian e-waste dumpsite. 

Research carried out in the west African nation in 2019 by the IPEN and Basel Action Network revealed a level of chlorinated dioxins in hens’ eggs laid near the Agbogbloshie dumpsite, near central Accra, 220 times higher than levels permitted in Europe. 

“We have moved mountains in Europe,” said WEEE Forum director Pascal Leroy. “The challenge now is to transfer knowledge to other parts of the world.”

 


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Government Mandates Registration of IMEI Number of All Mobile Phones Before Sale in India Starting 2023

The government has made the registration of IMEI number of all mobile phones mandatory before their sale in India on its anti-counterfeit and lost handset blocking portal from January 1, 2023.

According to a notification dated September 26, all mobile phones, whether made locally or imported, will need to be registered and get IMEI (International mobile equipment identity number) certificates from the Indian Counterfeited Device Restriction portal that is run by the Department of Telecommunications.

“The manufacturer shall register the international mobile equipment identity number of every mobile phone manufactured in India with the Indian Counterfeited Device Restriction portal of the government of India in the Department of Telecommunications prior to the first sale of the mobile phone,” the notification said.

The notification has been issued under the Prevention of Tampering of the Mobile Device Equipment Identification Number (Amendment) Rules, 2022.

Every mobile phone comes with a unique 15-digit IMEI number which serves as unique ID of the device.

There have been concerns over inability to track lost mobile phones due to the presence of counterfeit devices with the same IMEI on telecom network.

The government has launched the Central Equipment Identity Register (CEIR) project to block and trace lost or stolen mobile phones and added Indian Counterfeited Device Restriction (ICDR) system to curb proliferation of such handsets .

At present only blocking facilities of stolen or lost mobiles are available on the portal.

The CEIR project is working to resolve the issue of lost mobile phones by addressing the issue of counterfeit devices as well.

With the fresh notification, IMEI number of even imported devices will need to be registered on ICDR system, and obtaining IMEI certificates will be mandatory for the import of mobile devices through various customs ports.

“The international mobile equipment identity number of the mobile phone imported in India for sale, testing, research or any other purpose shall be registered by the importer with the Indian Counterfeited Device Restriction portal of the government of India in the Department of Telecommunications prior to import of mobile phone into the country,” the notification said.

The ICDR system has been operational since January 28, 2020. It can be accessed through a web portal for registration and generation of IMEI certificates without paying any charges.

The new system has replaced the old IMEI cloning and duplication restriction system, which was operated and maintained by the Mobile Standard Alliance of India (MSAI) — a private body.

MSAI is no longer authorised for registration, generation or issue of IMEI certificates and the government directly operates the system.


Buying an affordable 5G smartphone today usually means you will end up paying a “5G tax”. What does that mean for those looking to get access to 5G networks as soon as they launch? Find out on this week’s episode. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.
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iPhone-Sized Beam-Steering Device to Take Mobile Communications Beyond 5G: Study

In a step that may help achieve better network connectivity in the near future, scientists have developed a beam-steering antenna that enhances data transmission beyond 5G standards. This will give access to a range of frequencies for mobile communications that were earlier out of reach. With the size of an iPhone, the beam-steering antenna has been developed as a better alternative to the currently used fixed base station antenna. The fixed antennas were found to be inefficient at higher frequencies that limited their use for long-distance transmission.

The new device is capable of tracking a mobile phone just the way a satellite tracks a moving object, but at a much faster speed. Developed by researchers from the University of Birmingham, the device provides a continuous wide-angle beam and was found to be effective in improving data transmission efficiency at frequencies ranging across the millimetre-wave spectrum. These included the frequencies like those for 5G (mmWave) and 6G where high efficiency is achieved using mechanically steered antenna solutions.

The experimental results of the device were recently presented at the 3rd International Union of Radio Science Atlantic / Asia-Pacific Radio Science Meeting.

The new technology has been made compatible with the existing 5G specifications that are currently in use by mobile communication networks. In addition, the device doesn’t require inefficient and complex feeding networks that are used by conventional antenna systems. It is based on a low-complexity system that boosts performance and is also easy to make.

Scientists have developed the device using a metamaterial, created from a metal sheet containing regularly spaced holes micrometers in diameter. It has been equipped with an actuator that controls the height of the cavity in the metamaterial and allows the antenna to concentrate radio waves into highly directive signals. This leads to a significant boost in transmission efficiency.

Highlighting the potential of the device, Dr James Churm, one of the lead researchers, said, “Although we developed the technology for use in 5G, our current models show that our beam steering technology may be capable of 94 percent efficiency at 300 GHz.”

He added that the device has numerous uses such as in vehicular radar, satellite communications, space and defence applications, and automotive, among others.


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