Samsung warns memory shortage to deepen next year as 2027 orders come in

Samsung Electronics, the world's largest memory chipmaker, reported a record quarterly profit of KRW 47.22Tn ($31.8Bn) for the three months ended March, driven by robust sales of high-margin AI chips and rising memory prices in the device solutions division.

However, the company warned that the global memory chip shortage will worsen next year as anxious customers are already placing orders for 2027, even as the company's ability to fill them has fallen to a historic low. Supply increases within the industry will remain constrained for the time being, citing the lead times required for new factory expansions needed to meet a structural increase in memory demand caused by advancements in artificial intelligence technology.

Reference Sources

1. upi - Samsung Electronics Q1 net surges over fivefold on AI-driven demand
2. nikkei - Samsung warns memory shortage to deepen next year as 2027 orders come in
3. asiaone - Samsung chip profit jumps almost 50-fold; supply shortage to worsen in 2027, Money News - AsiaOne
4. rappler - Samsung chip profit jumps almost 50-fold; Supply shortage to worsen in 2027
5. cnbc - Samsung profit surges over eight-fold to beat estimates as AI boom fuels memory chip crunch

Apple eyes iPhone growth in first earnings report since Tim Cook's announced exit

Apple Inc. is set to release its fiscal second-quarter earnings report, outlook, and conference call on Thursday, marking the first significant opportunity for Wall Street to get a reading on the new leader's priorities.

The company announced last week that John Ternus, its current head of hardware infrastructure, will take over as CEO on Sept. 1. Investors will be looking beyond the numbers and seeking clues to incoming CEO John Ternus' strategic plans.

Ternus is taking over at a complex time for one of the world's biggest companies, which is expected to debut a number of major products in the upcoming months, notably a foldable iPhone.

Apple has been grappling with skyrocketing costs for key components like memory chips and a volatile macro backdrop driven by the war in Iran and advances in AI that have minted stock market winners and losers.

While growth trends are improving, Apple has been grappling with a volatile macro backdrop driven by the war in Iran and advances in ai that have minted stock market winners and losers. Investors have reason to be excited about Ternus since he was an overseer of some of Apple's most successful recent products, but his strategy will be a long-term story. One of the first things Ternus has to figure out is where Apple is going with artificial intelligence.

Reference Sources

1. bloomberg - Apple Earnings Become Sideshow With New CEO Ready to Grab Reins
2. cnbc - Apple eyes iPhone growth in first earnings report since Tim Cook's announced exit

China’s factory activity expands for a second month despite shocks from the Iran war

China's factory activity expanded for a second consecutive month in April, according to an official survey by the National Bureau of Statistics.

The manufacturing purchasing managers' index (PMI) dipped slightly to 50.3 from 50.4 in March, but kept above the 50-Mark separating growth from contraction.

The Sub-Index for production expanded at a slightly faster pace but that for new orders slowed to 50.6 from 51.6 in March.

The Sub-Index for raw material stockpiles rose but remained in contraction.

The expansion in factory activity, which follows Better-Than-Expected first-quarter growth, highlights the resilience of China's economy despite external shocks stemming from the Middle East war. higher energy prices are likely to deter fresh orders once stockpiling fades, even as Chinese exporters enjoy a short-lived boost.

The escalating Middle East conflict is laying bare risks in the $20 trillion economy's Production-Led growth model, with higher energy prices likely to deter fresh orders once stockpiling fades, even as Chinese exporters enjoy a short-lived boost.

Reference Sources

1. nikkei - China's factory still in positive territory in April, PMI shows
2. thestarmy - China's factory activity extends expansion, PMI shows, as Iran war risks mount
3. hongkongfp - China's April factory activity expands despite Middle East war
4. cnbc - China factory activity tops expectations in April — but growth slows as new orders soften
5. apnews - China’s factory activity expands for a second month despite shocks from the Iran war

The CommonWealth English daily news digest is a service curated by CommonWealth English team with the help of AI tools.  

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Uploaded by Ian Huang