Samsung Recorded Higher Profit

The early launch of Samsung’s new flagship Smartphone has paid off. The South Koreans do better than expected in the first quarter.

After launching its new smartphone flagship Galaxy S7 obviously good sales market leader Samsung has earned 2016 significantly more in the first quarter. The surplus rose year compared to 14 percent to 5.25 trillion won (approximately EUR 4 billion), as reported by the company. Sales climbed by 6 per cent to almost 50 trillion won. Samsung is the largest manufacturer of memory chips, smartphones and televisions.

Strong demand

While Apple had to accept a sales decline in its iPhones by 16 percent as the fiercest competitor of Samsung’s at the premium Smartphone, the South Koreans spoke of a strong demand for the models of Galaxy S7 and Galaxy S7 edge – but without call numbers for both devices. Both Samsung devices were brought to the market in March, a month earlier than the introduction of new models in the last year.

Apple but stayed according to the market researcher IDC calculations at the beginning of the year firmly in second place with 51.2 million units sold. Samsung sold therefore 81.9 million smartphones. In its business, IT and mobile communication (IN the) the South Korean electronics manufacturer with 3.9 trillion won recorded the highest increase in the operating profit in nearly two years.

Mixed forecast

A mixed picture emerges when the Outlook for the second quarter. “That will also enjoy expected further solid gains IN the Department by increasing sales of Galaxy S7 and a high profitability for products in the middle and lower area”, Samsung said.

At the same time, Samsung expected but for the overall market for smartphones and tablets, the demand to stagnate further. Also local manufacturers in China and India made disputed its leading position in the business with mobile phones and Smartphones South Koreans most recently in Asia.

In the semiconductor business, Samsung posted a decline of operating profit by 10 percent to 2.63 trillion won in the period from January to March. In displays, there was an operating deficit of 270 billion won. While sales of OLED in the first quarter had fallen later, had gone back to LCD sales due to a weaker demand, it said.