South Korean PCB-maker DAP has begun mass producing boards for Samsung Electronics’ upcoming flagship smartphone tentatively named the Galaxy S11. DAP is expected to supply boards to more high-end Samsung smartphones in 2020 as Samsung Electro-Mechanics has cut down its smartphone board business.
Industry sources said on Dec. 18 that DAP initiated the mass productions earlier this month. They said that like Korea Circuit, which expects its bottom line to improve upon supplying to the Galaxy S11, DAP is lilkely to see its profitability pick up next year.
DAP took third place in terms of its proportion in Samsung Electronics’ smartphone board portfolio. However, so far, its supplies were mostly for budget phones, which means limited profit. Parts going into high-end phones are usually more expensive and consequently makes more money for the suppliers.
With Samsung Electro-Mechanics increasingly moving out of the picture, industry watchers expect Korea Circuit and DAP to bag more board orders for Samsung’s premium smartphones.
This year, Samsung Electro-Mechanics accounted for nearly 30% of Samsung’s smartphone board supplies, followed by Korea Circuit in the mid-20% and DAP with just over 15%.
"DAP will see both its revenues and operating profit improve in the new year by supplying more to premium smartphones,” said one market source close to the matter.
In 2018, DAP’s sales rose 2.1% on-year to KRW 304 billion. Operating profit shot up 55.6% to KRW 11 billion. This year, its revenues as of the third quarter stood at KRW 206 billion, down 6.5% from the year before. Operating profit tumbled 8.17% to KRW 1.3 billion.
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