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In 2017, Samsung delivered impressive results, with its flexible OLED business experiencing the most significant growth. The company announced plans to expand production capacity for flexible OLED screens in order to boost profitability. At the same time, Samsung focused on strengthening its ecosystem around Bixby, its voice assistant.
According to the latest financial report, Samsung’s performance in 2017 was outstanding, with both manufacturing and consumer segments showing strong growth. Notably, the supply chain manufacturing division outperformed the consumer products division in terms of revenue contribution. Samsung's total sales surged by 119%, a remarkable achievement for the company’s manufacturing sector. Compared to the long-standing competition in the consumer electronics market, this level of growth is truly commendable.
Surprisingly, Samsung expects this positive trend to continue into 2018. The company plans to further increase production of high-end LCD and flexible OLED screens, aiming to enhance overall profitability. In the mobile division, Samsung will continue to innovate through advanced technologies like foldable OLED smartphones. Additionally, it will keep expanding the Bixby ecosystem and promoting intelligent IC networking services powered by its 5G technology.
Currently, Samsung holds a strong position in two key markets, but each comes with unique challenges. Flexible OLED screens are a critical technology that all manufacturers need. For Samsung, however, it must also consider the maturity of first-generation technology. Like traditional OLED panels, the flexible OLED industry is expected to grow steadily rather than rapidly.
On the other hand, the Bixby ecosystem tells a different story. Since its introduction, Bixby has faced criticism globally. As reported by *The Verge*, some users felt that Bixby represented a step backward for Samsung. The inclusion of a dedicated Bixby button on the Galaxy S8 was met with skepticism, especially in the early stages when its performance was subpar.
Moreover, it remains unclear how Bixby will generate substantial profits for Samsung. Unless these profits come from user data, it's unlikely that consumers would buy smart home devices or appliances solely because they support Bixby. While Bixby may not be a major profit driver for hardware, it could offer value to users by integrating across multiple platforms. For companies like Amazon, Apple, Microsoft, and Samsung, the ultimate goal of digital assistants is to lock users into their respective ecosystems. A versatile assistant that works across various devices and platforms can achieve this more effectively.
Another important point is Samsung’s dominance in the DRAM market. While companies like Micron and SK Hynix also play a role, Samsung stands out in terms of profitability. With Qualcomm potentially shifting some production to TSMC, this could contribute to the current DRAM shortage. Despite potential challenges in 2018, Samsung had a highly profitable year in 2017.