:quality(80)/s3.amazonaws.com/arc-authors/morningstar/282b2162-1222-486e-a4e7-38f2e9ac8bf7.jpg)
Samsung Will Catch Up on HBM Competition
Samsung Electronics has been a fantastic growth story as it has established itself as the clear global leader in the smartphone space during the past decade, following its success in becoming the global top manufacturer of flat panel TV in the 2000s. However, we do not identify an economic moat from its consumer electronics business, as these products are mature and difficult to differentiate, and are exposed to the tough competition from Chinese manufacturers. Unlike its competitor Apple, Samsung does not have an ecosystem that prevents users from switching to other brands, in our view.