Reuters recently wrote that since Apple reached a cooperation agreement with China Mobile, China's largest mobile operator, the Samsung mobile phone business is likely to welcome the most difficult situation since 2007.

Samsung’s mobile device division is currently contributing about two-thirds of its profits to Samsung, but after Apple’s agreement with China Mobile on the release of the iPhone 5S and iPhone 5C on January 17, Samsung’s business unit revenue Or will face a huge threat. Prior to this, Samsung's mobile device division has been operating in the Chinese market for seven years, and the industry's scale is as high as $80 billion.

To make matters worse, it is widely expected that Apple will launch a much-anticipated big-screen smartphone product this fall, which is Apple's traditional new product release season. If this rumor finally becomes a reality, Samsung’s big-screen selling point, which has been exclusive to its Galaxy Note smartphone since 2011, will no longer exist.

Kim Young-chan, an analyst at South Korea's Shinhan Investment, said: "The decline in Samsung's mobile business will be inevitable. Most of the company's future revenue will be transferred from cheap, low-margin mobile phones. In the high-end market, due to Apple's cooperation agreement with China Mobile, Samsung will obviously face a more difficult situation."

According to 23 analysts at the Thomson Reuters Starmine Smart Research Institute, the operating profit of Samsung's mobile device division will only achieve single-digit growth in 2014, and even decline. In the past five years, the operating profit of the department has increased by a total of eight times.

"In the fourth quarter of last year, Samsung's smartphone business has been affected by the strong sales of Apple's iPhone, and this impact will continue at least until the end of the first quarter of this year." Jin Yongcan added.

Samsung is currently the world's largest smartphone manufacturer, accounting for almost one-third of the global market share. According to the news, the company will release its quarterly earnings forecast for October-December 2013 on Tuesday. In this regard, Starmine Smart expects Samsung's operating profit for the fourth quarter of 2013 will reach 9.75 trillion won (about 9.24 billion US dollars), up 10% year-on-year.

If this forecast is correct, Samsung's operating profit in the fourth quarter of 2012 will be 4% lower than the third quarter (Samsung's third-quarter operating profit reached $9.62 billion, the highest in history), mainly due to Apple products. Holiday sales in major markets such as the US and Japan are extremely hot.

Of course, the decline in Samsung's fourth-quarter profit may also be related to the company's "new management plan." Analysts expect the total amount of the management plan to reach 30-700 billion won (about 2.7-6.3 billion US dollars).

Intense competition

Analysts expect Samsung's smartphones to reach 70 million units in China last year, a figure that accounts for one-fifth of the company's total smartphone shipments. But BNP Paribas expects Samsung's smartphone Galaxy S and Galaxy Note to have a 3% year-on-year decline this year, given Apple's cooperation agreement with China Mobile and the possibility of launching a larger screen phone. Moreover, the iPhone has always been recognized as the gold benchmark for high-end products in China.

BNP Paribas analyst Peter Yu (transliteration) said in an investor research report: "We believe that the key reason for Samsung to take market share from Apple is that the company launched a large-screen smartphone.

However, if Apple does launch a big-screen smartphone in 2014 as expected, the gap between Apple and Samsung's market share will be greatly reduced. Unless Samsung further highlights its features by launching a smartphone with an OLED flexible screen, the company is very likely to lose some high-end users. ”

Stock price turmoil

Samsung's share price has plunged sharply in recent weeks as 22 analysts downgraded Samsung's fourth-quarter earnings forecast. In the past two weeks, Samsung's share price has fallen 10%, and hit a four-month low last week. Moreover, the decline in stock prices directly led to the evaporation of Samsung's market value of 19 billion US dollars, which is equivalent to Sony's market value.

On the other hand, the South Korean won has recently hit a five-year high against the US exchange rate, which has led investors to sell Samsung stocks to a certain extent, because the appreciation of the won will inevitably lead to a decline in Samsung's overseas profits. For the Samsung component business, the rise in the Korean won is also a disadvantage because the business usually settles in US dollars. Currently, the component business contributes approximately 30% of operating profit to Samsung.

Analysts believe that Samsung's fourth quarter highlights will come from the company's semiconductor business, which contributed 20% of operating profit to Samsung, and this business unit's operating profit this year is expected to usher in a 42% year-on-year increase.

Finally, Starmine Smart expects Samsung's overall operating profit in 2014 to usher in a three-year low of only 6.2%.

Zinc Wire is a good  anti-corrosion material,widely used in steel structure anti-corrosion,wind power tower,bridge,sluice gate,oil pipe on sea,Ductile Iron Pipe,extrusion division tube.

Zinc Wire

Zinc Wire,High Pure Zinc Wire,Zinc Wire Mesh,Corrosion Protection Zinc Wire

Shaoxing Tianlong Tin Materials Co.,Ltd. ,