Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  KOREA EXCHANGE  >  Samsung Electronics Co Ltd    005930   KR7005930003

SAMSUNG ELECTRONICS CO LTD

(005930)
  Report  
SummaryNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

Explainer: How 5G drove moves by Apple, Qualcomm and Intel

share with twitter share with LinkedIn share with facebook
share via e-mail
0
04/17/2019 | 10:52pm EDT
FILE PHOTO: Silhouette of mobile user is seen next to a screen projection of Apple logo in this picture illustration

SAN FRANCISCO (Reuters) - Apple Inc and Qualcomm Inc on Tuesday settled an acrimonious two-year legal dispute. Shortly afterward, Intel Corp said it will exit the smartphone modem chip business.

The entire drama played out as the mobile phone industry prepares to shift to a technology called 5G.

Echoing complaints from the U.S. Federal Trade Commission, Apple had alleged that Qualcomm used its patent licensing business to keep a monopoly on modem chips that connect devices like the iPhone to wireless data networks. Qualcomm insisted that Apple was using its valuable technology without proper payment, and Apple later dropped Qualcomm's chips in favour of those from Intel.

In the end, Apple and Qualcomm ceased all litigation, with Apple signing a six-year licensing deal with Qualcomm and also agreeing to buy Qualcomm chips. Hours later, Intel said it was getting out of the modem chip business.

WHAT IS 5G?

5G is a new network technology for wireless communications that could be up to 100 times faster than current 4G networks. The networks are coming on line in the United States, China, South Korea and other places this year, but probably will not be widespread until 2020. Modem chips connect devices like phones to these networks.

WHO ARE THE PLAYERS IN 5G?

Prior to Tuesday, five companies had disclosed 5G modem chips or plans to make them: Qualcomm, Intel, MediaTek Inc, Huawei Technologies Co Ltd and Samsung Electronics Co Ltd. Samsung and Huawei, however, only make chips for their own mobile phones.

WHY DOES APPLE CARE ABOUT 5G?

Some of Apple's rivals in the smartphone market - notably Samsung - plan to release 5G devices this year, which could put pressure on Apple to match the feature. Many carriers that are investing heavily to build 5G networks are also likely to put their marketing efforts behind 5G phones.

WILL APPLE HAVE A 5G PHONE THIS YEAR?

It would require an extraordinary effort from both companies. New modems take months of testing to ensure phones will work on carrier networks. Under traditional time lines, Apple would have needed to start testing a 5G iPhone last year, but its supplier Intel did not have a chip ready.

WILL APPLE LOSE MARKET SHARE WITHOUT A 5G PHONE?

Apple was slow to 4G too and did not pay a price. Samsung and others released 4G phones in 2011 as the networks were rolling out. Apple waited until 2012, when 4G networks become widely accessible. Many analysts believe Apple is making the same bet with 5G.

WHY DOES APPLE NEED QUALCOMM'S CHIPS?

Apple's only current modem supplier, Intel, said that it would not have a 5G chip ready until 2020, which could have pushed Apple's launch of a 5G iPhone into 2021 - a long enough delay that it could hurt sales. Qualcomm, on the other hand, is preparing to ship its second generation 5G chip and can meet Apple's needs with its current products.

WILL APPLE EXCLUSIVELY USE QUALCOMM'S CHIPS?

Not necessarily. While Apple and Qualcomm signed a supply agreement, Apple is working on developing its own modems and disclosed in court earlier this year that it has held talks with MediaTek and Samsung around modems.

WHY DID INTEL SHARE RISE AFTER IT EXITED THE MODEM BUSINESS?

Intel Chief Executive Bob Swan has told investors in the past that modem chips are not likely to fetch the same high margins as its CPU chips. Intel has plenty of other ways to make money from 5G, like selling CPUs to makers of base stations and so-called programmable chips to makers of networking gear.

(This story corrects "with" to "without" in paragraph 3)

(Reporting by Stephen Nellis in San Francisco; Editing by Greg Mithcell and Lisa Shumaker)

By Stephen Nellis

Stocks mentioned in the article
ChangeLast1st jan.
APPLE -0.38% 178.97 Delayed Quote.13.90%
INTEL CORPORATION 0.09% 44.57 Delayed Quote.-6.24%
MEDIATEK INC. End-of-day quote.
QUALCOMM -3.00% 66.21 Delayed Quote.21.79%
SAMSUNG ELECTRONICS CO LTD End-of-day quote.
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on SAMSUNG ELECTRONICS CO LTD
05:27pSAMSUNG ELECTRONICS : unveils QLED 8K TV in UAE
AQ
03:10pBLACKBERRY : Cutting off Huawei's access to technology is cutting off innovation
AQ
02:07pSAMSUNG ELECTRONICS : South Korea orders further arrests at Samsung Electronics ..
RE
02:01pBest Buy Tells Customers it Canceled Preorders of Samsung's Galaxy Fold -CNN
DJ
11:52aSAMSUNG ELECTRONICS : in Partnership with Tigo launch the Galaxy A Series
AQ
08:09aASIA MARKETS: Asian Markets Mixed Amid Lingering Trade-war Worries
DJ
07:22aHuawei handsets draw fewer clicks after U.S. ban - PriceSpy
RE
07:17aSAMSUNG ELECTRONICS : may release a surprise new phone at the end of 2019
AQ
07:17aSAMSUNG ELECTRONICS : iPhone 11 camera, software and design details leaked
AQ
05:27aSAMSUNG ELECTRONICS : Xiaomi dismisses head of Africa arm for violating Chinese ..
RE
More news
Financials (KRW)
Sales 2019 223 836 B
EBIT 2019 29 157 B
Net income 2019 22 508 B
Finance 2019 94 212 B
Yield 2019 3,41%
P/E ratio 2019 12,82
P/E ratio 2020 10,03
EV / Sales 2019 0,88x
EV / Sales 2020 0,77x
Capitalization 290 823 B
Chart SAMSUNG ELECTRONICS CO LTD
Duration : Period :
Samsung Electronics Co Ltd Technical Analysis Chart | MarketScreener
Full-screen chart
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 39
Average target price 54 000  KRW
Spread / Average Target 23%
EPS Revisions
Managers
NameTitle
Hyun-Suk Kim Co-President, Co-CEO & Director
Dongjin Koh Co-President, Co-CEO & Director
Kinam Kim President, Co-CEO & Director
Tae Moon Roh Co-President & Head-Research & Development
Sang-Hoon Lee Chairman
Sector and Competitors
1st jan.Capitalization (M$)
SAMSUNG ELECTRONICS CO LTD244 582
FITBIT INC-2.21%1 239
MERRY ELECTRONICS CO LTD--.--%1 040
HTC CORP--.--%927
MEMTECH INTERNATIONAL LTD69.62%140
VUZIX CORP-49.90%67