Samsung sees 10% profit growth on better-than-expected sales of flagship Galaxy S7
On the heels of the launch of the Galaxy S7 and S7 Edge, Samsung Electronics issued preliminary guidance on Thursday saying it expects profits to grow more than 10 percent for the first quarter of 2016, exceeding market expectations.
Samsung Galaxy S7
Samsung's new guidance calls for consolidated operating profit of 6.6 trillion Korean won, or $5.7 billion U.S. That would be a 10.4 percent increase from a year prior.
It's also above consensus estimates from investors, who expected profits of 5.53 trillion won, according to polls conducted by Bloomberg. It's estimated that the S7 lineup sold 9 million units in their first month, tripling that of the previous-generation Galaxy S6.
In contrast, Apple sold 13 million iPhone 6s and iPhone 6s Plus units in just one weekend when both devices launched last September.
The S7 lineup launched in March and was met with positive reviews, with critics praising Samsung's hardware and design. The handset's software --?primarily Samsung's proprietary TouchWiz interface -- were said to be the weak points for the devices.
Facing high-end competition from Apple and being attacked at the low-end by Chinese manufacturers, Samsung has faced two straight years of declines in its mobile business. The first-quarter turnaround comes after Samsung has made efforts to streamline its lineup and focus on its most competitive devices.
Samsung will face even tighter competition in the mid-range market, especially in emerging markets, thanks to the launch of Apple's new 4-inch iPhone SE. Priced starting at $399, it's the most affordable new iPhone model Apple has ever introduced.
On the high end, Samsung's Galaxy S7 and S7 Edge are expected to face competition from Apple's "iPhone 7" beginning this fall. If Apple sticks to its usual release schedule and strategy, the next iPhone should feature an all-new design and A10 processor, and launch starting at $649 without contract this September.
Samsung Galaxy S7
Samsung's new guidance calls for consolidated operating profit of 6.6 trillion Korean won, or $5.7 billion U.S. That would be a 10.4 percent increase from a year prior.
It's also above consensus estimates from investors, who expected profits of 5.53 trillion won, according to polls conducted by Bloomberg. It's estimated that the S7 lineup sold 9 million units in their first month, tripling that of the previous-generation Galaxy S6.
In contrast, Apple sold 13 million iPhone 6s and iPhone 6s Plus units in just one weekend when both devices launched last September.
The S7 lineup launched in March and was met with positive reviews, with critics praising Samsung's hardware and design. The handset's software --?primarily Samsung's proprietary TouchWiz interface -- were said to be the weak points for the devices.
Facing high-end competition from Apple and being attacked at the low-end by Chinese manufacturers, Samsung has faced two straight years of declines in its mobile business. The first-quarter turnaround comes after Samsung has made efforts to streamline its lineup and focus on its most competitive devices.
Samsung will face even tighter competition in the mid-range market, especially in emerging markets, thanks to the launch of Apple's new 4-inch iPhone SE. Priced starting at $399, it's the most affordable new iPhone model Apple has ever introduced.
On the high end, Samsung's Galaxy S7 and S7 Edge are expected to face competition from Apple's "iPhone 7" beginning this fall. If Apple sticks to its usual release schedule and strategy, the next iPhone should feature an all-new design and A10 processor, and launch starting at $649 without contract this September.
Comments
But, at least it arrests the constant slide they had.
That's significant... a definite bounce... but we'll see if it goes up (which would be a good thing in some respects, indicating that high end phones are still in demand), or if it bounces downward again (that this is a 3 month blip that is still part of a Blackberry/RIMM like cratering).
SMH. Faith in humanity lost.
Orders for the S7 are reportedly up in the Netherlands 250% compared to the S6, and over 60% of those are for the more expensive Edge version. Carphone Warehouse in the UK said orders were up 200%.
If I were a Samsung investor I doubt I'd be turning cartwheels over a 10% rise in 'consolidated operating profit'. There's a lot of accountancy double dealing to play with behind that phrase.
It's kind of like M$ moving a bunch of copies of Windows 10 after the Win8 debacle. It's good. But only because up is the only way to go.
When was the last time iPhone had something best in the industry?
2010, iPhone 4 - Retina display
2013, iPhone 5s - Touch ID
And when do you say are going to upgrade the screen? 2018?
Tim, with all respect you should leave.
I dunno - there's carrier software, Microsoft software, Google software and then the OS - all of it running and doing stuff.
I figured out how to disable most of the unnecessary crap.
Apple may have a few niggles here and there on the hardware but their software is miles ahead.
ohh and those pages and return buttons v nearly drove me insane.
So happy when I got my 6s back.
All of the tech press fawning over 'Samsungs amazing industrial design'.... and really they are just back to copying the iPhone? The Verge gurgling about an Android Renaissance?
Hopefully the new iPhone this September will have a groundbreaking new design (don't ask me what it will look like - I'm not an Apple engineer!) and we will see how the Android designers fare then. I'm guessing they will somehow look pretty similar.