Day: 5 April 2024

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Tech giant Samsung expects profits to jump by more than 900%

Semiconductor

Samsung Electronics anticipates its profits for the first quarter of 2024 to surge more than tenfold compared to the previous year.

This projection is due to the recovery in chip prices following a post-pandemic decline and a surge in demand for artificial intelligence (AI) related products.

As the world’s leading manufacturer of memory microchips, smartphones, and televisions, the South Korea-based Samsung reportedly plans to publish a comprehensive financial report on 30th April 2024.

Projected profit

The tech giant has projected that its operating profit for the January-March 2024 quarter soared to 6.6 trillion won ($4.9bn; £3.9bn), marking a 931% increase from the same period in 2023, surpassing analysts’ forecasts of approximately 5.7 trillion won.

Rebound in microchip prices

A rebound in global semiconductor prices, following a significant downturn the previous year, is expected to bolster its earnings. Over the past year, global memory microchip prices have reportedly increased by about 20%. The semiconductor division of Samsung typically generates the most revenue for the company.

The demand for semiconductors is projected to stay robust throughout the year, fueled by the expansion in AI technologies. Furthermore, the earthquake that struck Taiwan on 3rd April 2024 could potentially constrict the worldwide chip supply, possibly enabling Samsung to further elevate its prices.

Taiwan a key player

Taiwan houses several key chipmakers, including TSMC, which supplies Apple and Nvidia. Despite TSMC reporting minimal impact on its production from the earthquake, it did experience some operational disruptions.

Additionally, Samsung is poised to benefit from the sales of its newly launched flagship Galaxy S24 smartphones, introduced in January.

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Is Apple planning to build an AI robot?

Robotics

Reports indicate that Apple is delving into AI-powered robotics, aiming to innovate within the home robotics sector. A Bloomberg article reveals that the tech titan is exploring two fascinating initiatives.

Mobile Robot

Apple is reportedly exploring the development of a robot that can accompany its owner. Envision a congenial AI companion that travels with you.

Robotic Display

The project aims to develop a robotic mechanism capable of moving displays. Despite being periodically removed and reinstated on Apple’s roadmap; it is still in the preliminary research stage.

The projects are spearheaded by Matt Costello, Apple’s VP of Hardware Engineering, and Brian Lynch, the Senior Director of Home Hardware Engineering. Moreover, Apple’s AI team is developing algorithms to enable robots to navigate homes, potentially linking to the mobile robot initiative.

Apple’s foray into AI-driven home robots comes after shelving its electric vehicle project, marking an intriguing development. The company is exploring the integration of AI into AirPods and the possibility of creating smart glasses. Despite not launching generative AI tools as swiftly as some rivals, Apple is set to introduce some later this year.

In the realm of robotics, Apple enters a field with established entities like Amazon, Roomba, and Unitree, which have already introduced home robotics products.

Therefore, it’s worth watching for upcoming Apple AI products in the future!

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Tesla losing market share to Chinese EV makers

EV

Chinese EV manufacturers such as BYD and smartphone maker Xiaomi are starting to inflict some damage to Tesla’s EV market.

Xiaomi has launched its first electric vehicle (EV) and started taking orders.

The company reportedly announced that the standard SU7 model would be priced at 215,900 yuan ($29,872; £23,663), while the Max version would be available for 299,900 yuan.

Xiaomi boasted over 50,000 orders within the first 27 minutes of sales.

Xiaomi’s foray into the electric vehicle market occurs amid a global slowdown in sales growth, sparking a pricing war.

This strategy positions the tech company against EV competitors such as Tesla and BYD. In China, the entry-level price for Tesla’s Model 3 stands at 245,900 yuan.

It was reported that the SU7 would have a minimum range of 700km (435 miles), beating the Tesla Model 3’s 567km.

The company is optimistic that the SU7’s unified operating system, which is compatible with its phones, laptops, and other devices, will attract current customers.

Xiaomi ranks as the world’s third-largest smartphone seller, holding approximately a 12% market share.

Numerous global EV manufacturers, including BMW, Audi, Nissan, and Hyundai, are encroaching on Tesla’s market share. Additionally, Chinese EV producers are entering the market with increasingly affordable alternatives.

How will Tesla respond?

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Gold goes higher again as it breaks through $2,300

Gold bars

The precious metal has reached consecutive record highs this year, including a peak on Thursday 4th April 2024.

The gold price surpassed $2,300 before slightly retracting. By early Friday, it was trading at approximately $2,278 per ounce.

According to some analysts, geopolitical and structural factors are setting gold on a trajectory to reach $2,600 per ounce within the next year.

The catalysts for its ascent and the potential for further increases in the near to medium term are widely debated among investors, particularly as the stock market continues to post strong gains.

Gold price over three months 2024

Gold price over three months 2024

The anticipation of interest rate reductions and central bank acquisitions has been instrumental in propelling the rally in recent months.

If the Fed were to indicate higher interest rates in its latest FOMC meeting, then gold and other assets will likely fall.