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Tag: samsung group

  • Samsung flags 78% profit drop as chip demand remains weak | CNN Business

    Samsung flags 78% profit drop as chip demand remains weak | CNN Business


    Hong Kong
    CNN
     — 

    Samsung warned that operating profit in the third quarter likely plunged 78% as it continues to contend with lower than usual demand for consumer devices.

    The South Korean tech giant released earnings estimates Wednesday, forecasting operating profit of about 2.4 trillion Korean won ($1.8 billion) for the three months ended September. That compares with 10.85 trillion won ($8 billion) in the same period last year.

    Revenue was also projected to drop 12.7% from a year ago.

    That continues a dreary run for the electronics maker, which has reported major losses in recent months as global economic uncertainty weighs on consumers around the world, leading many people to hold on to their cell phones and laptops longer.

    According to Counterpoint Research, “2023 is on track to be the worst year for global smartphone shipments in 10 years,” with shipments forecast to decline 6% to fewer than 1.2 billion units.

    In major markets like North America, “consumers are hesitant to upgrade their devices,” the firm noted in an August report.

    Samsung has already been feeling the effects. The firm’s operating profit plummeted 95% in the first quarter, following a record loss in its semiconductor business. It saw similar results in the second quarter.

    After a historic supply shortage during Covid, the global semiconductor industry is now seeing a glut in some areas that has driven losses for Samsung, the world’s largest memory chip and smartphone maker.

    According to consultancy Bain, “the semiconductor industry’s post-pandemic rebound boosted capacity to the extent that some foresee an oversupply.”

    In a report last month, Bain suggested the trend was merely cyclical, attributing it to “normal” ups and downs in the industry.

    Samsung has also told shareholders it anticipates a gradual comeback in global demand in the second half of the year.

    This “should lead to an improvement in earnings driven by the component business,” it said in a July earnings statement.

    “However, continued macroeconomic risks could prove to be a challenge,” the company cautioned.

    Analysts believe a downturn in memory chips will also turn around, benefiting manufacturers like Samsung.

    In a recent note to clients, Nomura analysts said they expected a recovery in the sector “to accelerate” through the rest of this year.

    “The team expects memory prices to remain flat or slightly increase in [the third quarter], then show strong growth in [the fourth quarter],” the analysts wrote, maintaining a buy rating on Samsung’s stock.

    The company’s shares climbed 3.5% in Seoul on Wednesday following its announcement.

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  • South Korean firms get indefinite waiver on US chip gear supplies to China | CNN Business

    South Korean firms get indefinite waiver on US chip gear supplies to China | CNN Business


    Seoul
    Reuters
     — 

    Samsung Electronics and SK Hynix will be allowed to supply US chip equipment to their China factories indefinitely without separate US approvals, South Korea’s presidential office and the companies said on Monday.

    The United States had been expected to extend a waiver granted to the South Korean chipmakers on a requirement for licenses to bring US chip equipment into China.

    “Uncertainties about South Korean semiconductor firms’ operations and investments in China have been greatly eased; they will be able to calmly seek long-term global management strategies,” said Choi Sang-mok, senior presidential secretary for economic affairs.

    The United States has already notified Samsung and SK Hynix of the decision, indicating that it is in effect, Choi said.

    The US Department of Commerce is updating its “validated end user” list, denoting which entities can receive exports of which technology, to allow Samsung and SK Hynix to keep supplying certain US chipmaking tools to their China factories, the presidential office said.

    Once included in the list, there is no need to obtain permission for separate export cases.

    Samsung and SK Hynix, the world’s largest and second-largest memory chipmakers, have invested billions of dollars in their chip production facilities in China and welcomed the move.

    “Through close coordination with relevant governments, uncertainties related to the operation of our semiconductor manufacturing lines in China have been significantly removed,” Samsung said in a statement.

    SK Hynix said: “We welcome the US government’s decision to extend a waiver with regard to the export control regulations. We believe the decision will contribute to the stabilization of the global semiconductor supply chain.”

    Samsung Electronics makes about 40% of its NAND flash chips at its plant in Xian, while SK Hynix makes about 40% of its DRAM chips in Wuxi and 20% of its NAND flash chips in Dalian.

    The companies together controlled nearly 70% of the global DRAM market and 50% of the NAND flash market as of end-June, data from TrendForce showed.

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  • Why foldable phones are so incredibly expensive | CNN Business

    Why foldable phones are so incredibly expensive | CNN Business



    CNN
     — 

    Chris Pantons is what you’d call a Google Pixel super fan. The Knoxville, Tennessee native loves the software, the camera, the virtual assistant, all of it. He even credits the phone’s car crash detection tool with saving his life a few years ago when he was in an accident.

    “I’ve owned practically every Pixel device,” said Pantons, 33, who has posted hundreds of YouTube videos about Pixel phones and other tech products. “I’ve influenced so much of my family to switch to Pixel – my brother and sister-in-law, mom and wife … and I had a coworker switch, too.”

    But this is the first year he won’t be upgrading to Pixel’s latest offering: the Pixel Fold, a foldable smartphone that starts at $1,799. “I’d love to own it,” he told CNN. “I don’t have the finances to do so. … [That] price for a first generation device is astronomical.”

    Earlier this month, Google became the latest tech company to unveil a foldable smartphone, with the promise of giving customers all the features they’ve come to expect in a phone, paired with a tablet-sized display. But Pantons wasn’t the only one who felt sticker shock.

    “My first car was $1800,” one user wrote on Twitter. “Google [lost] their minds.” Another user said they’ve been saving up, knowing the price for a Pixel foldable phone would inevitably be high once announced.

    “The fact you can buy a new Pixel, Pixel tablet and a Pixel Watch for less than the Fold and have various devices for use cases is a better value,” said Pantons.

    The pricing problem isn’t unique to Google. When Samsung launched the Galaxy Z Fold in 2020, it cost $1,999. It has come down in price somewhat, but the latest version of the Z Fold still starts at $1,799 – the same as the Pixel Fold. Even foldable models from budget brands retail for well over $1,000 in markets abroad.

    By comparison, the flagship iPhone starts at $799, less than half the price of the Pixel Fold. And classic 90s-style pre-paid flip phones, which are suddenly trendy again, can cost as little as $20.

    The higher price point is one of the factors limiting the size of the foldable market. Samsung currently dominates the category, followed by others including Motorola, Lenovo, Oppo, and Huawei. According to ABI Research, foldable and flexible displays made up about 0.7% of the smartphone market in 2021, and in 2022 expected to fall just shy of 2%.

    Lowering the price could help boost traction, but manufacturers may struggle to do that anytime soon.

    The flexible screen found on foldable phones is one of the biggest reasons why they cost so much.

    Flexible displays require more engineering and are more expensive to manufacture than traditional displays. And the Google Pixel Fold has two: a 5.8-inch cover display and a 7.6-inch inner display.

    Other components unique to foldables also drive up the cost. The Pixel Fold, for example, moves on a custom-built 180-degree hinge. The mechanism is moved out entirely from under the display to improve its dust resistance and decrease the device’s overall thickness, according to the company. This also requires complex engineering and costly manufacturing.

    “Expense is mainly to do with the high costs of components, notably the folding displays and hinge technology, which in many cases is a proprietary hinge design,” said David McQueen, research director at ABI Research. “So until volume grows enough that vendors can get scale, prices won’t be falling any time soon.”

    Foldable smartphones are still in their infancy. As a result, much of the research and development, and the costs associated with it, still lie ahead for manufacturers as they fine tune their products.

    “Companies often try to recoup their investment with a high price tag,” said Nabila Popal, research director at market research firm IDC.

    Foldable phones also remain a niche product for now, and manufacturers are targeting the price for the people willing to buy them early to help offset costs.

    The future for foldables remains uncertain. Most apps are still not optimized for foldable devices; Google’s chief rival, Apple, has yet to embrace the option; and splurging for a first-generation device with a lot of unknowns is a risky bet for anyone.

    Foldable phones are also notoriously fragile. Early versions of the Samsung Galaxy Z Fold, for example, had issues with the screen. Repairs for foldable smartphones can be costly too.

    But Google’s decision to embrace the option may help persuade more consumers to take a chance.

    Sean Milfort, a PhD student at Northcentral University, said he pre-ordered the Pixel Fold because he always wanted a foldable smartphone and didn’t want to leave the Pixel brand.

    “I’m a big fan of the Pixel line and have loved the idea of a foldable,” he said. “The fact that it is coming from Google – because they make Android – gives me hope that they will be really investing in that larger form factor device with Android.”

    But holdouts like Pantons may wait on the chance it could come down in price.

    “If a trade-in deal later on becomes available or it goes on sale then maybe then [I’ll buy one],” he said.

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  • Samsung unveils Galaxy S23 lineup with powerhouse camera | CNN Business

    Samsung unveils Galaxy S23 lineup with powerhouse camera | CNN Business



    CNN
     — 

    At its annual Unpacked event on Wednesday, Samsung unveiled its latest Galaxy S smartphones – and the company is betting that focusing on improvements to the camera will be enough to get consumers to upgrade.

    The new lineup, which includes the 6.8-inch Galaxy S23 Ultra, 6.6-inch Galaxy S23+, and 6.1-inch Galaxy S23, look similar to last year’s models, but with new photo features, a longer lasting battery life (with faster charging speeds) and an exclusive chip.

    But the standout feature is the new camera. The higher-end S23 Ultra features a new 200 MP adaptive pixel sensor for the first time that supports multiple levels of high-resolution processing at once, enabling what the company called “unprecedented resolution photo quality never before seen on a smartphone camera.”

    The new phones offer improved photo and video stabilization, Nightography for photos and videos (allowing the ability to capture shots in low light situations) and a new AI-powered image signal processing algorithm that enhances object details and color tone.

    Samsung also introduced its first Super HDR selfie camera, jumping from 30 frames per second to 60 frames per second, for better front-facing images and videos.

    The cameras on the Galaxy S23+ and Galaxy S23 even have a subtle new look: the contour housing has been removed, which Samsung said marks a new era of design. The Galaxy S23 Ultra’s display comes with a reduced curvature to create a larger and flatter surface intended to improve the visual experience. Its Enhanced comfort feature allows users to adjust color tones and contrast levels, and lessen eye strain at night. Its vision booster tool also got an update to further cut down on glare.

    Ahead of the event, Jude Buckley, executive VP of the mobile business for Samsung Electronics America, told CNN its strategy continues to be staying at the forefront of camera innovation.

    “We try to own a few things really uniquely, and the camera is one of the things that we have to stay well ahead of,” he said.

    The launch comes at as Samsung and other tech companies confront broader economic uncertainty that could push consumers to rethink their spending. Global smartphone shipments fell by 18% in the fourth quarter of 2022, according to market research firm Canalys.

    Earlier this week, Samsung reported that its quarterly profits had plunged to their lowest level in eight years as customers snapped up fewer smartphones and laptops. Its revenue also fell 8% from the prior year.

    While the company is keeping prices the same as the prior year, it nonetheless must convince customers to shell out as much as four figures for its new phone lineup in a tough market.

    Galaxy S23 Ultra, which comes with Samsung’s signature S pen, will start at $1,199.99, while the Galaxy S23+ starts at $999.99 and Galaxy S23 starts at $799.99.

    The new lineup, which is available for pre-order starting on Wednesday, comes in four matte colors: black, cream, green and lavender. Other colors, such as lime, graphite, sky blue and red, will be available for purchase directly on Samsung.com.

    The company also showed off its latest flagship PC Galaxy Book3 series: the high-end Galaxy Book3 Ultra ($2,399.99); the Book3 Pro 360 ($1899.99) – featuring a 2-in-1 convertible form factor with S Pen functionality; and the Galaxy Book3 Pro ($1449), a thin clamshell laptop.

    While the new features in the S23 lineup may not be revolutionary, some may resonate with its loyal users and keep Samsung competitive in the market.

    “The Galaxy S23 family demonstrates just how hard it is to tell a new story in today’s smartphone market,” said Leo Gebbie, principal analyst at CCS Insight. “The latest devices from Samsung are undoubtedly impressive but the emphasis on improvements to camera capabilities and battery life is nothing new. They underscore the difficulty that Samsung and other phone makers have in finding genuinely new ways to promote and sell their products.”

    David McQueen, an research director at ABI Research, said manufacturers continue to dole out incremental updates, rather than waiting two years to release a new impactful device, because “the market moves so quickly now.”

    “Companies need to be seen to be providing new devices with the latest technology, no matter how unnoticeable the upgrade, to survive,” he said.

    Samsung agrees. Buckley told CNN that while some updates are bigger than others, it has to stay on top of the latest trends to remain competitive.

    “Our heritage is technology, and we have a very fierce competitor who has done an amazing job over many, many years,” Buckley said, in an apparent reference to Apple. “And if your technology, if your value proposition is based in technology, you’ve always gotta be at the forefront. If you were the first to go to every two years, that’d be a painful two years.”

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  • Samsung profits sink to 8-year low as smartphone and PC demand drops | CNN Business

    Samsung profits sink to 8-year low as smartphone and PC demand drops | CNN Business


    Hong Kong
    CNN
     — 

    Samsung’s quarterly profits have plunged to their lowest level in eight years as customers snapped up fewer cell phones and laptops.

    The tech giant reported operating profit of 4.3 trillion Korean won ($3.5 billion) on Tuesday for the three months ended December, down 69% from a year ago. Revenue fell 8% to just under 70.5 trillion won ($57.3 billion), it said in a statement.

    It was the company’s weakest quarterly profit since the third quarter of 2014, when its smartphone business lost serious ground to competitors.

    “The business environment deteriorated significantly in the fourth quarter due to weak demand amid a global economic slowdown,” Samsung noted in the statement.

    The dreary results were anticipated. Samsung

    (SSNLF)
    had flagged the lackluster performance in a pre-earnings forecast earlier this month, with analysts citing falling memory chip prices and fewer orders of consumer devices.

    In a presentation to investors, the electronics maker confirmed that “mobile and PC demand was weak,” and its memory chip business had also suffered “as customers continued to adjust their inventories amid deepening uncertainties.”

    Samsung expects some of those problems to continue in the coming months due to global economic uncertainty, though it anticipates overall demand to start recovering in the second half of the year.

    Smartphone demand will likely slide again this quarter compared to the same period a year ago, “due to the economic slowdown in major regions,” it said.

    Samsung’s shares dropped 3% in Seoul on Tuesday.

    There were some bright spots. Samsung said it took in 302.2 trillion won ($245.7 billion) in revenue for the full year of 2022, up from 279.6 trillion won ($227.4 billion) in 2021, and a record high.

    Analysts have said, however, that they expect the company’s profits to drop again this quarter because of a continued decline in memory chip prices.

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  • Samsung estimates quarterly profit sank to 8-year low on demand slump | CNN Business

    Samsung estimates quarterly profit sank to 8-year low on demand slump | CNN Business


    Seoul
    Reuters
     — 

    Samsung Electronics flagged on Friday its quarterly profit tumbled to an eight-year low as a weakening global economy hammered memory chip prices and curbed demand for electronic devices.

    Profits at the world’s largest memory chip, smartphone and TV maker are expected to shrink again in the current quarter, analysts said, after Samsung announced its October-December operating profit likely fell 69% to 4.3 trillion won ($3.37 billion) from 13.87 trillion won a year earlier.

    It was Samsung

    (SSNLF)
    ’s smallest quarterly profit since the third quarter of 2014 and fell short of a 5.9 trillion won Refinitiv SmartEstimate, which is weighted toward forecasts from analysts who are more consistently accurate.

    “All of Samsung’s businesses had a hard time, but chips and mobile especially,” said Lee Min-hee, analyst at BNK Investment & Securities.

    Quarterly revenue likely fell 9% from the same period a year earlier to 70 trillion won, Samsung said in a short preliminary earnings release. Asia’s fourth-biggest listed company by market value is due to release detailed earnings later this month.

    Rising global interest rates and cost of living have dampened demand for smartphones and other devices that Samsung makes and also for the semiconductors it supplies to rivals including Apple

    (AAPL)
    .

    “For the memory business, the decline in fourth-quarter demand was greater than expected as customers adjusted inventories in their effort to further tighten finances,” Samsung said in the statement.

    Its mobile business’ profit declined in the fourth quarter as smartphone sales and revenue decreased due to weak demand resulting from prolonged macroeconomic issues, Samsung added.

    “Memory chip prices fell in the mid-20% during the quarter, and high-end phones such as foldable didn’t sell as well,” said BNK Investment’s Lee.

    Three analysts said they expected Samsung’s profits to dive again in the current quarter, with a likely operating loss for the chips business as a glut drives a further drop in memory chip prices.

    Samsung shares rose 0.3% in Friday morning trade, underperforming a 0.6% rise in the wider market. Shares of rival memory chip maker SK Hynix rose 1%.

    “The reason shares are rising despite the poor earnings result is… investors are hoping Samsung will need to reduce production, like Micron or SK Hynix said they would, which would help the memory industry overall,” said Eo Kyu-jin, an analyst at DB Financial Investment.

    Samsung had said in October that it did not expect much change to its 2023 investments. Analysts said that Samsung has a history of not announcing production cuts in memory chips, but could organically adjust investment by delaying bringing in equipment or through other ways.

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  • Samsung names billionaire scion Jay Y. Lee as chairman | CNN Business

    Samsung names billionaire scion Jay Y. Lee as chairman | CNN Business


    Hong Kong/Seoul
    CNN Business
     — 

    Samsung has appointed Jay Y. Lee, its longtime de facto leader, as executive chairman.

    The move was announced Thursday, making official who would continue to head up South Korea’s most valuable and well-known company. Lee had previously held the title of vice chairman.

    Samsung’s board, which approved the change, “cited the current uncertain global business environment and the pressing need for stronger accountability and business stability,” the tech giant said in a statement.

    It comes just months after Lee, the scion of one of South Korea’s most powerful families, was pardoned for crimes including embezzlement and bribery.

    In August, Lee was personally excused by the country’s president for his alleged wrongdoing, with officials citing an economic crisis that required the attention of its top business leaders.

    The pardon ended a five-year ban on Lee holding a formal position at Samsung. The billionaire was twice sent to prison but had been out on parole since last year.

    Lee, also known widely as Lee Jae-yong, has been operating as Samsung’s de facto leader since 2014, when his father fell into coma after suffering a heart attack. The senior Lee died in 2020.

    This week, the younger Lee marked the second anniversary of his father’s death, vowing in a staff meeting Tuesday “to preserve his legacy.”

    “During this period, we have had to confront many challenges, and at times, we have struggled to make breakthroughs,” he said, according to a readout of remarks that Samsung shared with CNN Business. “Without a doubt, we are at a pivotal moment.”

    “Now is the time to plan our next move,” Lee added.

    The pledge coincides with an ambitious drive announced by Samsung in May, which will see the conglomerate pour more than $350 billion into its businesses and create 80,000 new jobs over the next five years.

    Most of the jobs are expected to be in South Korea, and the funds will primarily go toward businesses such as chipmaking and biopharmaceuticals.

    Samsung reported a 31% drop in operating profits Thursday, logging nearly 10.9 trillion Korean won ($7.6 billion) in the third quarter compared to 15.8 trillion won ($11.1 billion) in the same period last year.

    In an earnings presentation, the company warned that “weak demand for mobile phones and TVs” were hurting its bottom line. While the company expects “demand to recover partially in 2023,” global economic pressure will likely continue to affect its performance, it said.

    However, the group also enjoyed record sales. It said revenue had reached 76.8 trillion won (nearly $54 billion) in the third quarter, despite “a challenging business environment,” and still forecast its full-year revenue to surpass that of 2021.

    Samsung shares ticked up nearly 1% in Seoul on Thursday following the announcements.

    — CNN’s Yoonjung Seo in Seoul contributed to this report.

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  • Google unveils new Pixel 7 smartphones and first-ever Pixel smartwatch | CNN Business

    Google unveils new Pixel 7 smartphones and first-ever Pixel smartwatch | CNN Business



    CNN
     — 

    Google on Thursday unveiled its new Pixel 7 smartphone lineup and its first-ever Pixel smartwatch, packed with tracking and health features from its subsidiary Fitbit.

    At a press event in New York City, Google showed off the new Pixel 7 and Pixel 7 Pro devices, which largely look the same as the year prior but with new camera features, an improved screen and battery, and an updated Google Tensor processor.

    While many of the updates are iterative, the lineup will likely appeal to tech enthusiasts who want the latest version of Android and an alternative to Apple or Samsung smartphones, as well as those who haven’t upgraded their Pixel device in a few years.

    The 6.3-inch Pixel 7 features a glass back, aluminum frame and a sleek band on the back with black cutouts for the camera system. Its always-on OLED display allows for quick checking of widgets that highlight useful information, such as baggage claim details at the airport or when packages are arriving (not unlike what’s been recently made available on the new iPhone 14 line with the lockscreen).

    Google

    (GOOG)
    said the Pixel 7’s screen is now 25% brighter for visibility indoors, and the device can go a full day on a single charge (or 72 hours when on extreme battery saver mode). It comes in three colors – obsidian, snow and lemongrass – and starts at $599, or $200 less than a baseline iPhone 14 with the same amount of storage.

    “We want people to give Pixel a try, so while phones in this tier typically start at $799, we’re starting the price at $599,” Brian Rakowski, Google vice president of product management, said on stage during the event.

    The larger 6.7-inch Pixel Pro – which comes in a matte aluminum finish – features an always-on display, the same long-lasting battery as the Pixel 7 and a new triple rear camera system, which includes a 5x telephoto lens, 30x super resolution zoom and an upgraded ultrawide lens. The ultrawide lens comes with autofocus capabilities to support new features including Macro Focus that picks up on fine details.

    Both models run on Google’s new Tensor G2 processor, which powers the device’s machine learning and speech recognition capabilities, and several camera features. With Night Sight, for example, the camera now processes photos twice as fast. The tech also drives Cinematic Blur, a new dramatic blurring effect for videos.

    A new accessibility feature called Guided Frame helps visually impaired users take better selfies by vocally instructing them to move the device in specific directions. Google also announced updates to making calls, including cutting down on background noise and the ability to transcribe audio messages into text messages.

    The Pro model, which comes in obsidian, snow and hazel, starts at $899. Pre-orders start on Thursday for both models and the devices hit shelves on Thursday, October 13.

    Google’s Pixel line remains a niche product. Its global market share for smartphones has never surpassed 1% on an annual basis, according to data from IDC Research. Google also limits sales to only a handful of countries, so keeping the volume low has been strategic as Google remains predominantly a software company with many partners running Android. (Google said the Pixel 7 line, however, will launch in sevral new countries, including India, Denmark, Sweden and the Netherlands.)

    Google won’t likely take much market share away from Apple with these Pixel updates, as iPhone owners are known to be brand-loyal. Other Android smartphone makers, however, such as Samsung or smaller Chinese manufacturers may feel the pressure from consumer interest in Google hardware, according to Ben Wood, an analyst with CC Insight. “But given the incremental updates, it’s possible there will be less excitement than there has been in the past,” he said.

    At the event, Google also teased another early look at its upcoming Pixel tablet, which will feature the Tensor G2 processor, and is expected to launch in 2023.

    But one area where Google could make a greater impact this year is with the introduction of the Pixel watch. It is Google’s first wearable that plays up Fitbit’s strengths in health, fitness and wellness since closing its $2.1 billion acquisition of the smartwatch company early last year. Until now, Google had been quiet about how the Fitbit brand would integrate with its Wear OS software.

    The Google Pixel Watch

    The new 41 mm Google Pixel Watch features a circular, domed-shaped Gorilla Glass display that’s scratch- and water-resistant. It promises up to 24 hours of battery life and is compatible with Android 8 and newer devices. Built with Fitbit’s tracking capabilities, the Pixel Watch can monitor a user’s heart rate and sleep quality, offers 40 workout modes, and learns user behavior over time.

    The device also assists with emergency SOS and supports a handful of Google services, including Google Wallet, Gmail and calendar updates, as well as sending messages and talking over 4G. The Pixel Watch comes in black, gold and silver finishes. It will cost $349 for Bluetooth and $399 for 4G LTE.

    “Pixel Watch poses zero threat to the Apple Watch, but it has an important role to play in raising the awareness of smartwatches for Android smartphone owners,” Wood said. “Given the success of the Apple Watch, there has to be a bigger market for smartwatches in the Android segment and together with Samsung’s Galaxy Watch, the new Pixel Watch should be a key driver for growth.”

    It may take the Pixel Watch a few generations to catch up to the Apple Watch in terms of usability, however, as Apple’s smartwatch is now in its ninth iteration. But coupled with the Fitbit acquisition and the formation of Wear OS in collaboration with Samsung, Google is showing its greater commitment to the smartwatch market and perhaps hoping the time may finally be right for it.

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  • How your phone learned to see in the dark | CNN Business

    How your phone learned to see in the dark | CNN Business


    New York
    CNN
     — 

    Open up Instagram at any given moment and it probably won’t take long to find crisp pictures of the night sky, a skyline after dark or a dimly lit restaurant. While shots like these used to require advanced cameras, they’re now often possible from the phone you already carry around in your pocket.

    Tech companies such as Apple, Samsung and Google are investing resources to improve their night photography options at a time when camera features have increasingly become a key selling point for smartphones that otherwise largely all look and feel the same from one year to the next.

    Earlier this month, Google brought a faster version of its Night Sight mode, which uses AI algorithms to lighten or brighten images in dark environments, to more of its Pixel models. Apple’s Night mode, which is available on models as far back as the iPhone 11, was touted as a premier feature on its iPhone 14 lineup last year thanks to its improved camera system.

    These tools have come a long way in just the past few years, thanks to significant advancements in artificial intelligence technology as well as image processing that has become sharper, quicker, and more resilient to challenging photography situations. And smartphone makers aren’t done yet.

    “People increasingly rely on their smartphones to take photos, record videos, and create content,” said Lian Jye Su, an artificial intelligence analyst at ABI Research. “[This] will only fuel the smartphone companies to up their games in AI-enhanced image and video processing.”

    While there has been much focus lately on Silicon Valley’s renewed AI arms race over chatbots, the push to develop more sophisticated AI tools could also help further improve night photography and bring our smartphones closer to being able to see in the dark.

    Samsung’s Night mode feature, which is available on various Galaxy models but optimized for its premium S23 Ultra smartphone, promises to do what would have seemed unthinkable just five to 10 years ago: enable phones to take clearer pictures with little light.

    The feature is designed to minimize what’s called “noise,” a term in photography that typically refers to poor lighting conditions, long exposure times, and other elements that can take away from the quality of an image.

    The secret to reducing noise, according to the company, is a combination of the S23 Ultra’s adaptive 200M pixel sensor. After the shutter button is pressed, Samsung uses advanced multi-frame processing to combine multiple images into a single picture and AI to automatically adjust the photo as necessary.

    “When a user takes a photo in low or dark lighting conditions, the processor helps remove noise through multi-frame processing,” said Joshua Cho, executive vice president of Samsung’s Visual Solution Team. “Instantaneously, the Galaxy S23 Ultra detects the detail that should be kept, and the noise that should be removed.”

    For Samsung and other tech companies, AI algorithms are crucial to delivering photos taken in the dark. “The AI training process is based on a large number of images tuned and annotated by experts, and AI learns the parameters to adjust for every photo taken in low-light situations,” Su explained.

    For example, algorithms identify the right level of exposure, determine the correct color pallet and gradient under certain lighting conditions, sharpen blurred faces or objects artificially, and then makes those changes. The final result, however, can look quite different from what the person taking the picture saw in real time, in what some might argue is a technical sleight-of-hand trick.

    Lights illuminate the Atlanta Botanical Gardens, in this photo taken using Google Pixel 5 Night Sight setting.

    Google is also focused on reducing noise in photography. Its AI-powered Night Sight feature captures a burst of longer-exposure frames. It then uses something called HDR+ Bracketing, which creates several photos with different settings. After a picture is taken, the images are combined together to create “sharper photos” even in dark environments “that are still incredibly bright and detailed,” said Alex Schiffhauer, a group product manager at Google.

    While effective, there can be a slight but noticeable delay before the image is ready. But Schiffhauer said Google intends to speed up this process more on future Pixel iterations. “We’d love a world in which customers can get the quality of Night Sight without needing to hold still for a few seconds,” Schiffhauer said.

    Google also has an astrophotography feature which allows people to take shots of the night sky without needing to tweak the exposure or other settings. The algorithms detect details in the sky and enhances them to stand out, according to the company.

    Apple has long been rumored to be working on an astrophotography feature, but some iPhone 14 Pro Max users have successfully been able to capture pictures of the sky through its existing Night Mode tool. When a device detects a low-light environment, Night mode turns on to capture details and brighten shots. (The company did not respond to a request to elaborate on how the algorithms work.)

    AI can make a difference in the image, but the end results for each of these features also depend on the phone’s lenses, said Gartner analyst Bill Ray. A traditional camera will have the lens several centimeters from the sensor, but the limited space on a phone often requires squeezing things together, which can result in a more shallow depth of field and reduced image quality, especially in darker environments.

    “The quality of the lens is still a big deal, and how the phone addresses the lack of depth,” Ray said.

    While night photography on phones has come a long way, a buzzy new technology could push it ahead even more.

    Generative AI, the technology that powers the viral chatbot ChatGPT, has earned plenty of attention for its ability to create compelling essays and images in response to user prompts. But these AI systems, which are trained on vast troves of online data, also have potential to edit and process images.

    “In recent years, generative AI models have also been used in photo-editing functions like background removal or replacement,” Su said. If this technology is added to smartphone photo systems, it could eventually make night modes even more powerful, Su said.

    Big Tech companies, including Google, are already fully embracing this technology in other parts of their business. Meanwhile, smartphone chipset vendors like Qualcomm and MediaTek are looking to support more generative AI applications natively on consumer devices, Su said. These include image and video augmentation.

    “But this is still about two to three years away from limited versions of this showing up on smartphones,” he said.

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  • Samsung to cut chip production after posting lowest profit in 14 years | CNN Business

    Samsung to cut chip production after posting lowest profit in 14 years | CNN Business


    Seoul
    Reuters
     — 

    Samsung Electronics said on Friday it would make a “meaningful” cut to chip production after flagging a worse-than-expected 96% plunge in quarterly operating profit, as a sharp downturn in the global semiconductor market worsens.

    Shares in the world’s largest memory chip and TV maker rose 3% in early trading, while rival SK Hynix shares surged 5% as investors welcomed plans to cut production to help preserve pricing power.

    Samsung

    (SSNLF)
    estimated its operating profit fell to 600 billion won ($455.5 million) in January-March, from 14.12 trillion won a year earlier, in a short preliminary earnings statement. It was the lowest profit for any quarter in 14 years.

    “Memory demand dropped sharply … due to the macroeconomic situation and slowing customer purchasing sentiment, as many customers continue to adjust their inventories for financial purposes,” it said in the statement.

    “We are lowering the production of memory chips by a meaningful level, especially that of products with supply secured,” it added, in a reference to those with sufficient inventories.

    The production cut signal is unusually strong for Samsung, which previously said it would make small adjustments like pauses for refurbishing production lines but not a full-blown cut.

    It did not disclose the size of the planned cut.

    The first-quarter profit fell short of a 873 billion won Refinitiv SmartEstimate, weighted toward analysts who are more consistently accurate. Multiple estimates were revised down earlier this week.

    It was the lowest since a 590 billion won profit in the first quarter of 2009, according to company data.

    With consumer demand for tech devices sluggish due to rising inflation, semiconductor buyers including data center operators and smartphone and personal computer makers are refraining from new chip purchases and using up inventories.

    Analysts estimated the chip division sustained quarterly losses of more than 4 trillion won ($3.03 billion) as memory chip prices fell and its inventory values were slashed.

    This would be the chip business’ first quarterly loss since the first quarter of 2009, a major divergence for what is normally a cash cow that generates about half of Samsung’s profits in better years.

    Revenue likely fell 19% from the same period a year earlier to 63 trillion won, Samsung said.

    The company is due to release detailed earnings, including divisional breakdowns, later this month.

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  • Samsung profits plunge 95% | CNN Business

    Samsung profits plunge 95% | CNN Business

    Samsung Electronics flagged a gradual recovery for chips in the second half of the year after its semiconductor business reported a record loss on Thursday, driven by weak demand for tech devices.

    A global downturn in semiconductor purchases amid an economic slowdown and weak customer spending sent chip prices plummeting in the first quarter, triggering production cuts across the sector.

    Samsung

    (SSNLF)
    said its chip business would focus on high-capacity server and mobile products “based on expectations of a gradual market recovery and a rebound in global demand” in the second half.

    For the current quarter, Samsung said it expected limited recovery for memory chips as major data center firms invested more conservatively in servers.

    The world’s biggest memory chipmaker said operating profit fell to 640 billion won ($478.6 million) for the January-March quarter, down 95% from 14.12 trillion won a year earlier and the lowest profit for any quarter in 14 years.

    Revenue fell 18% to 63.7 trillion won.

    The South Korean tech giant’s chip division — normally its most reliable cash cow — reported a 4.58 trillion won loss compared to an 8.45 trillion won profit a year earlier.

    Shoppers around the world have cut back on purchases due to rising inflation. As a result, smartphone, personal computer and server companies have run down inventories, causing chip prices to plunge by about 70% over the previous nine months.

    Samsung made a rare announcement of a chip production cut earlier this month, joining smaller rivals.

    Although this could help chip prices recover slightly, analysts said Samsung’s profit in the current quarter may be similar to Q1 without a fundamental recovery in demand for devices that use chips.

    By the second half of the year, customers will have run down inventory and gradually start buying chips again, Samsung said.

    Despite the record loss in chips, Samsung said it spent 10.7 trillion won in capital expenditures during Q1, the highest for the first quarter of any year.

    Out of that, 9.8 trillion won was spent on chips as Samsung sets up production in its Taylor, Texas and Pyeongtaek, South Korea factories.

    “Samsung Electronics will continue to invest in memory semiconductors at a similar level to the previous year … to secure mid- to long-term competitiveness,” it said.

    Samsung’s mobile business was a brighter spot, reporting 3.94 trillion won profit in Q1, up from 3.82 trillion won a year earlier.

    “Samsung is focusing on profit rather than shipments” as it meets more resilient demand for premium smartphones rather than volume, said Jene Park, senior analyst at Counterpoint.

    In the second half, Samsung forecast the smartphone market would increase in both shipments and revenue as the global economy recovers.

    Shares in Samsung fell 0.5% in morning trade, in line with the wider market.

    Samsung shares have risen about 16% year-to-date as investors anticipate a memory chip recovery in the second half of this year.

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