Samsung nearly beats all-time quarterly profit records before even launching the Galaxy S8
If you had trouble believing Samsung would be able to post thriving quarterly profits in the very aftermath of the immensely harmful Galaxy Note 7 discontinuation, the world’s number one smartphone maker has just confirmed Q1 2017 financial results perfectly in line with internal forecasts.
While overall revenue between January and March of this year was only marginally on the rise compared to the first three months of 2016, at KRW 50.55 trillion ($45 billion), up from 49.78 trillion won, the company’s bottom line registered tremendous YoY growth, as well as solid QoQ gains.
We’re talking 9.9 trillion won ($8.75 billion) earned in the 90-day timeframe kicking off 2017, which represents a 48 percent increase over Q1 2016’s KRW 6.68tn profit score. It’s also up 7 percent from last year’s final quarter, not to mention Samsung’s second highest number on record.
Granted, these mind-blowing results were obtained despite predictably mediocre mobile business performance, but the chaebol’s components departments blossomed mainly thanks to surging demand from other smartphone assemblers and vendors.
Everyone and their mother is using Samsung’s OLED panels, processors, memory products, even image sensors, particularly in “premium” devices, boosting not just sales, but more importantly, average prices, thus easily offsetting shrinking Galaxy S7 margins owed to frequent discounts.
Looking ahead, the expectation is for chips, displays and components in general to remain wildly successful, with “robust” Galaxy S8 shipments likely to put the IT & Mobile Communications Division back on track for profit growth as well. Oh, and in case you had any lingering doubt, the “launch of a new flagship smartphone in the second half” of the year is now officially etched in stone. Can you say Galaxy Note 8?