The past years, whenever we would report about Samsung, it was always to say that they lost profit or that they did not exceed their expectations, etc. But the good news for the Korean OEM for this second quarter of 2016 is that they are reporting a rise in profit compared to last year’s numbers. In fact, this is the highest profit that they’ve shown in two years. And you can actually put the “blame” on the better than expected sales of their newest flagship.
The decision to bring the Samsung Galaxy S7 and S7 edge to the market ahead of its usual schedule has really paid off. Or maybe it’s also because the smartphones were actually pretty good and brought something else to the table (unlike the lukewarmly received previous flagship). Samsung has reported that their April-June profit was around $7 billion (8.1 trillion won) which was better than the forecast from analysts. The last time they had a profit this high was back in the first quarter of 2014 when it had 8.5 trillion won.
And for the second straight quarter, what has brought Samsung out of the doldrums is their mobile division. And with the sales of the Galaxy S7 expected to rise even more in the second half of the year, Thomson Reuters analysts are predicting that they will be able to maintain this profitable margin for the rest of 2016 with an average of 7-8 trillion won earnings per quarter.
But not all investors are convinced that this will become a continuos profit growth for Samsung, especially in the “cut-throat smartphone segment”. The expected release of the new iPhone later this year plus the continued emergence of Chinese players in the international market will likely have an effect on their bottomline by the end of the year.
VIA: Reuters
