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

LG Electronics's 5G phones in doubt as chip deal with Qualcomm set to expire

share with twitter share with LinkedIn share with facebook
share via e-mail
0
06/12/2019 | 02:03am EDT
FILE PHOTO: A man talking on his phone walks past the logo of LG Electronics during Korea Electronics Show 2016 in Seoul

SEOUL (Reuters) - Sales of LG Electronics Inc's new 5G smartphone looked uncertain on Wednesday after the firm said it was unable to narrow differences with Qualcomm Inc to renew a chip licence deal that is due to expire this month.

In a U.S. court filing late on Tuesday, the South Korean firm opposed Qualcomm's efforts to put a sweeping U.S. antitrust decision against it on hold, arguing setting the ruling aside could force it into signing another unfair deal.

"If Qualcomm does not participate in negotiations with LGE in accordance with the Court’s Order, LGE will have no option but to conclude licence and chipset supply agreements once again on Qualcomm's terms," LG's filing in the federal court in San Jose, California said.

The lack of clarity over a new licence deal raises concerns over the rollout of LG's newly launched 5G smartphones, crucial for the loss-making handset maker to boost flagging smartphone sales and catch up with Samsung Electronics Co Ltd.

"If LG Electronics fails to renew its contract with Qualcomm, it is very likely that it will not be able to make any phones since LG does not manufacture chips by itself," BNK Securities analyst Park Sung-soon said.

"It would do catastrophic damage to its mobile business."

An LG spokeswoman said she could not elaborate on the potential impact as negotiations with Qualcomm were in progress.

The firm launched its first 5G smartphone powered by Qualcomm in the United States in May after debuting it in South Korea in the same month.

LG is the third-largest smartphone vendor in the U.S. market with an 11 percent market share as of the first quarter of this year, and trails Apple Inc and Samsung, according to market researcher Counterpoint.

The firm has been renegotiating a licensing deal with Qualcomm after terminating the existing agreement in 2018 to seek better terms with the chipmaker. But the two companies have failed to reach a new deal and their interim licence agreement will end this month.

Qualcomm in late May asked a U.S. federal judge not to enforce her antitrust decision while it pursued an appeal. The company said the judge's ruling would entail "radically restructuring its business relationship" in ways that would be impossible to reverse if it won an appeal.

LG said Qualcomm would be able to extend its chipset monopoly status into the 5G market if the court decided to put the antitrust ruling on hold.

"Staying the Court's Order as Qualcomm requests will cause LG Electronics irreparable harm in its negotiations with Qualcomm and that may ultimately impact the entire 5G market," LG said in the filing.

(Reporting by Heekyong Yang and Ju-min Park; Editing by Stephen Coates)

Stocks mentioned in the article
ChangeLast1st jan.
APPLE -0.73% 192.74 Delayed Quote.22.19%
LG ELECTRONICS INC. End-of-day quote.
QUALCOMM -1.73% 68.72 Delayed Quote.20.75%
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
05:14pREVIEW : Huawei P30 Pro – The Beast Gets Mightier.
AQ
11:38aSAMSUNG GALAXY S10 VS SONY XPERIA 1 : what's the difference between the premium ..
AQ
06/15SAMSUNG ELECTRONICS : Galaxy Fold might not show up until after the Note 10
AQ
06/15SAMSUNG ELECTRONICS : Sprint adds Samsung's Galaxy S10 5G to its lineup on June ..
AQ
06/15AT&T : offers Samsung 5G phones to businesses only
AQ
06/15SAMSUNG ELECTRONICS : underscores its commitment to 8K technology at QLED Summit..
AQ
06/14SAMSUNG ELECTRONICS : Galaxy Fit release date, price, news and features
AQ
06/14SAMSUNG ELECTRONICS : Galaxy S10 5G edition goes up for pre-order
AQ
06/14SAMSUNG ELECTRONICS : Three's new Samsung S10, S10e and S10 Plus big data deals ..
AQ
06/14SAMSUNG ELECTRONICS : Motorola Moto Z4 & Samsung Galaxy A50 Now Available From V..
AQ
More news
Financials (KRW)
Sales 2019 224 652 B
EBIT 2019 28 715 B
Net income 2019 22 255 B
Finance 2019 91 139 B
Yield 2019 3,38%
P/E ratio 2019 13,12
P/E ratio 2020 10,27
EV / Sales 2019 0,90x
EV / Sales 2020 0,80x
Capitalization 293 694 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 54 094  KRW
Spread / Average Target 22%
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 LTD246 201
FITBIT INC-10.26%1 150
MERRY ELECTRONICS CO LTD--.--%1 013
HTC CORP--.--%914
MEMTECH INTERNATIONAL LTD68.35%139
VUZIX CORP-25.78%50