Galaxy S7/Edge success shines in Samsung 1Q16 results
The last few years have been a very tough road for Samsung. Despite launching the critically acclaimed Galaxy S6 brothers last year, the firm was unable to put brakes on declined operating profits. But, it seems the 7th generation S series has done the wonders in Samsung’s balance sheet.
The company posted KRW 49.78 trillion ($43.46 billion) revenue and KRW 6.68 trillion ($5.83 billion) operating profit, well ahead of anticipated KRW 49 trillion ($43.3 billion) and KRW 6.6 trillion ($5.7 billion) figures respectively.
Samsung noted that “The first quarter saw overall earnings growth led by the early launch and successful sales of the flagship Galaxy S7 and S7 edge” And we couldn’t agree more. Last year Galaxy S6/edge were announced in February and only made available here in India on 10th April. And this time the S7/edge were launched within the 25 days of global announcement. The South Korean giant learned from their mistake and that clearly reflects in Q1 figures.
As far as the mobile division is concerned, the company posted KRW 27.60 trillion ($24.12 billion) in revenue, up 6.6% YoY, and KRW 3.89 trillion ($3.4 billion) in operating profit, up year-on-year rise of 42%. This was the division’s robust performance in nearly a couple of years.
As the year goes on, Samsung warns for softening demand for the smartphone market and also anticipates the negative growth in tablet market. The firm also said that it will reinforce its leadership in the premium smartphone segment on the back of the Galaxy S7 and S7 edge, while continuing to increase volume and improve profitability in the mid-to-low-end segment with the likes of J series and A series.
With the upcoming devices, specially Galaxy Note 6 and a steady demand of S7/edge, we could expect Samsung to deliver healthy numbers in the coming quarters.