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00:00So as you had expected as well very strong quarter. What did you like about Samsung right now. I think the overall situation for Samsung is quite positive. But we expected strong results for them on the back of their memory business and they've launched it is 20 Gattex. Yes 22 cities this quarter. So that's been going very well. It's kind of replacing the Galaxy Nautilus or you know it's it's a double effect for something that gets on the back of their memory business and the smartphones. I think it's it's baseball would result. What about going forward given that Chinese demand could be hit by Covid. If you look at the smartphone business it doesn't impact Samsung so much they have a really small share in the China market. But the supply chain disruptions that we see in China because of the knock down snow that could have a vital impact on the overall supply situation. And then that impressed everyone in the market. So you're not so much concerned about the consumer side of demand when it comes to the risks from China. It's definitely impacting China in 2021. We did see a strong growth or a rebound in the smartphone market. This was helped by the pent up demand that was coming from you know the year before and there was this five shoe migration that was happening. But coming in to 2022 we do expect the growth to slowdown maybe more like flat growth. And a huge reason for that is the slowdown in the China market. People are not buying smartphones as they have in the past. How quickly do we see the moderation of the supply side challenges. Better supply when it comes to screens when it comes to displays going into the second half of the year. I you that a lot of headwinds still as we look at the whole supply chain situation in some cases. We do see the supply shortages being alleviated. If you look at LCD disappeared rivals for example we see that the market is back up to supply shortages. We don't see them anymore. But then you know at the same time when we look at some of the other components for example the IBM ISE is the problem management ISE. He's dead. Is still ongoing shortage for those of probably it will go on at least till the middle of this year. So as a result of this the problem is for the OEM still kind of scaled back on the entire set of orders because if they don't have one component they can go ahead with the production. So then they have to scale back in their entirety in that gear so that that continues to be a challenge. There is a lot of unsold entity in demand for decline devices due to the ongoing geopolitical and economic situation globally. So yeah that's something that the audience and the manufacturers have to kind of be mindful of. Karen James when it comes to the long term growth of Samsung it seems to be really wavering on this chip foundry business house. How challenging will it be to replicate the success that TSMC has had so far. Thompson's a chip success largely hinges on the memory chips the net and the data. And it's doing a pretty successfully in that so far it is the leader in those segments. And as we look into you know 20 22 or the years ahead I think that's still going to be strong. Even if the demand from the consumer businesses or the climbed devices kind of goes down for the peaches that smartphones we still expect strong growth coming from data centers and services which will keep of going strong. But you know as we compared it with some of the foundry businesses similar to the party is empty. I think there is still some way for Samsung to rule. Well you know it's a process. In that case. So yeah they did some months. I didn't. It is uncertain. It is on that guess. But overall if you look at Samsung's chip business I think it's still headed for strong growth. What are some of the key challenges for this coming year. I think the biggest is the uncertainty around the supply chain and which again stems from being not sure about you know how the demand is going to pan out. We've seen some indications that the demand for FTSE smartphones will slow down. They've seen very strong yields in the past few years but it is expected to slow down. But then you know with ongoing issues with the war with the inflation lockdowns there is still a lot of uncertainty in the market on how low it can go. The US semiconductor industry ambitions are moving very quickly in the longer term. Does that mean further downside for Samsung in terms of reduced reliance on Asian suppliers. I think we still have some way to go and what we need to keep in mind is that that additional capacity is still catered to additional demand. So it's it's it's not like a zero sum game in that case. So it's kind of making sure that there are you know guidance or more sources of supply in that case rather than just being you know limited to certain Asian players and DAX. But the overall demand is going to continue to increase and that's still a positive for Samsung.

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IDC's Kaur on Samsung Preliminary Earnings

Kiranjeet Kaur, IDC Asia Pacific Senior Research Manager, Client Devices discusses Samsung's preliminary earnings and smartphone outlook. She speaks with Shery Ahn and Haidi Stroud-Watts on "Daybreak Asia". (Source: Bloomberg)

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