Samsung ups GS6 production

http://www.bloomberg.com/news/articles/2015-04-24/samsung-sa…

The report states that Samsung has increased production of the GS6 because demand is higher than Samsung expected.

The article surmises that production has been increased from 2 million units a month to 5 million units a month by activating a third factory to produce the S6 phone components.

If this is really incremental demand of 3 million units per month, then SWKS will sell $9.75M more product to Samsung every month. Whether this will really be incremental demand for SWKS is debatable because higher sales of the S6 could mean lower sales of other phones in which SWKS also has content. In post 7870, I estimated the SWKS content in the S6 to be $3.25 per phone. That’s almost $30M more in revenue per quarter (if incremental). Guidance for the current quarter (ending 6/30/15) is $800M.

Chris

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Thanks for the heads-up Chris. This will be great for OLED also…

  • Khleb
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