Apple rival Samsung posts high Q2 profits on rebounding phone division
Korea's Samsung on Thursday reported its highest quarterly profits in two years -- likely based on smartphones, despite intense competition from Apple and Chinese firms like Huawei.
Although the company won't post in-depth results until later this month, Samsung said that its Q2 profits are estimated to have grown 17.4 percent year-over-year to 8.1 trillion won ($7 billion), according to Reuters. The company's mobile division is thought to have been the top profit driver.
It took hits from several directions in 2015, as Apple ate into high-end phone sales with the iPhone 6 and 6 Plus, while Chinese firms advanced into the budget market. The Galaxy S6 meanwhile had a botched launch, with too few of the most popular models available.
The company responded by streamlining its product lineup -- thereby improving profit margins -- and releasing the Galaxy S7, which has proven the success it was originally hoping for from the S6.
The iPhone 6s and 6s Plus also haven't been as popular as might have been anticipated. Apple posted its first-ever decline in iPhone sales during the March quarter, and multiple suppliers have indicated that the company is holding back on orders, at least for anything prior to this fall's "iPhone 7."
Although the company won't post in-depth results until later this month, Samsung said that its Q2 profits are estimated to have grown 17.4 percent year-over-year to 8.1 trillion won ($7 billion), according to Reuters. The company's mobile division is thought to have been the top profit driver.
It took hits from several directions in 2015, as Apple ate into high-end phone sales with the iPhone 6 and 6 Plus, while Chinese firms advanced into the budget market. The Galaxy S6 meanwhile had a botched launch, with too few of the most popular models available.
The company responded by streamlining its product lineup -- thereby improving profit margins -- and releasing the Galaxy S7, which has proven the success it was originally hoping for from the S6.
The iPhone 6s and 6s Plus also haven't been as popular as might have been anticipated. Apple posted its first-ever decline in iPhone sales during the March quarter, and multiple suppliers have indicated that the company is holding back on orders, at least for anything prior to this fall's "iPhone 7."
Comments
Yes it is all a shell game, increase profits could have come from any number of their business units, keep in mind the statement is based on a Reuters report not an actually statement from Samsung. They only said they dropped products and streamline costs. This does not increase profits by 17%. We also know that Samsung as heavily engaged on BOGO activities this last quarter they were trying to move phones anyway they could. I am not sure how you grow profits when you are giving stuff away.
I think you meant to say "Although the company will NEVER post in-depth results"
Samsung will release an overall "smartphone" shipment number that will sound impressive save for the fact it includes lots of phones in the $100-200 range. And they won't tell us how many S7 variants were sold but will "imply" that the S7 is responsible for the increase in revenues/profits.
Yet Samsung has NEVER given us any S7 sales figures. Do you remember when Samsung was always releasing statements about the sales numbers for their Galaxy S class phones? Every milestone they hit (10, 20, 30 million) was followed by a press release. They also loved to talk about how many days/months it took to hit 10 million sales (The S2 took 5 months, the S3 took 55 days and the S4 only 29 days). They even have a "10 million seller" page at their site which lists all the devices that have "made the club".
The last time Samsung released any figures was in Feb 2014 when they announced they had sold a total of 200 million Galaxy S class phones. Sounds impressive until you realize the iPhone had sold 413 million over the exact same time period that the Galaxy S devices were available. Since then the gap between iPhone and Galaxy would have been even wider, considering Samsung phone sales slumped for 7 consecutive quarters while Apple continued to put up record numbers.
So yes, the S7 is selling, but it's doubtful that it's some runaway sales success.
it warms my heart to hear about all these iKnockoff manufacturers biting the dust and the possibility of bankruptcy is music to my ears.
its just sad that the dirtiest companies in the industry are still in the game.
Apple certainly need the competition.
An unpopular opinion I'm sure, but Apple does some of its best work when its fighting hardest.
Probably the same for any company really.
What hapens when a company has no one to compete against? Ask Microsoft.
The S7 is a beautiful design. The iPhone 6/6s is Meh. The iPhone six sold big numbers because of the screen size increase despite a lame design.
Thats why Samsung is up and apple is struggling.
Did you miss my other post that explains Samsungs history of actually providing sales milestones for their Galaxy S models? Or that Samsung sells a lot of cheap phones? Apple only sells flagships. Samsung sells flagships, but the majority of their sales are low-end. That's why their ASP is in the low $200 range.
Opinions can't be used as evidence, fyi.