Daiwa Capital Markets Expect that Samsung Electronics’ stock price will rise 40% next year, driven by the Korean company’s progress in strengthening its market position after ousting Huawei from certain segments. In the third quarter of this year, according to experts, Samsung Electronics revenues will grow the most in the direction of television technology and smartphones. Revenue should grow 23% sequentially and 5% YoY. Operating income will increase by 29% sequentially and 35% year-on-year. The sales volumes of Samsung smartphones can increase sequentially by 46%, up to 79 million units. This will certainly allow the Korean manufacturer to regain its status as the largest supplier of smartphones in the foreseeable future since Huawei Technologies recently snatched this title from it.

Televisions and smartphones are Samsung’s product categories that, for the first time since Q2 2016, are likely to surpass the semiconductor segment in terms of revenue. Huawei sells up to 41% of its smartphones outside of China, this is where Samsung can claim early revenge. The supply of Samsung components for Huawei’s needs forms 3.2% of the Korean company’s revenue, so in the first months after the US sanctions come into force, it will feel a negative economic effect, but in the future, the redistribution of the smartphone and telecommunications equipment market will allow Samsung to receive “political dividends” from the Chinese failures. rival.

Even as the RAM market is poised to show signs of oversaturation, rushed purchases from Huawei are helping Samsung keep memory prices stable. The Verizon deal serves as an example of how Samsung is benefiting from the sanctions against Huawei in the telecom equipment segment. China controls 35.7% of the world market, while Samsung is content with 13.2%. They, presumably, will not change places, but the Korean manufacturer will definitely get something after Huawei is expelled from many countries.