Strong Galaxy S7 sales push overall Q1 Samsung results through the roof
Although technically both Samsung and Apple rolled out new phones unusually early this year, that turned out to be a smart business move for only one of the two tech giants and mobile industry leaders, which posted unexpectedly strong financial numbers for the past quarter.
Granted, the iPhone SE launched commercially a little too late to significantly elevate its maker’s sales, revenue and profits scores for the January – March timeframe, but at the same time, it’s doubtful the 4-incher will ever match the Galaxy S7’s mainstream success.
Samsung of course isn’t ready to share actual shipment figures for its newest flagship duo, merely highlighting “strong global performance”, “robust sell-out figures and low inventory levels compared to their predecessors” in today’s press release detailing first quarter financial results.
Overall, both revenue and operating profit saw healthy surges from Q1 2015, of 5.7 and 12 percent respectively, to KRW 49.78 trillion ($43 billion+) and KRW 6.68 trillion ($5.84 billion). The mobile division went a step further and saw a “substantial earnings improvement both year-on-year and quarter-on-quarter”, the latter being a wholly unusual variation, as traditionally, phones sell best during the holidays.
Not this time, apparently, as Christmas shoppers held out for the “next big thing”, as well as Galaxy A and J series upgrades which are expected to particularly thrive in Q2 and help Samsung “maintain robust sales momentum and profit.”
Will that same momentum curtail as far as the Galaxy S7 and S7 Edge are concerned soon? Samsung doesn’t believe so, anticipating “strong demand for flagship products” going forward, including “new model launches in the second half” (cough, Galaxy Note 6, cough).
Still, at the end of the day, “softening demand in the smartphone market and negative growth in the tablet market” are forecasted “for the year ahead”, so Galaxy S7’s early launch was merely a temporary fix for a larger, industry-wide problem.
Source: Samsung Newsroom