The release of Galaxy S7 line-up in the global market shook the global smartphone economy. The results were clearly visible in the Samsung market report that was presented in the first quarter of 2016. While fiercest rival Apple reported decade’s lowest iPhone sales and quarterly earnings record, Samsung succeeded in snatching back its long-lost glory.
Propelled by a dramatic boost in mobile earnings, thanks to the robust sales of Galaxy S7 line-up, the upcoming report of Samsung quarterly earnings is going to please investors and shareholders.
Samsung earnings 2016 for the second quarter are said to be the best in last two years. On Thursday, the electronics behemoth will disclose final estimates for Samsung quarterly earnings for the successful second quarter of this year. Analysts are predicting that the strong sales report from mobile division is responsible for contributing 13 percent boost in Samsung’s operating profit from last year’s same period.
Analysts are predicting Samsung earnings 2016 (April – June) will report 7.8 trillion operating profit. In other words, this is going to be the highest operating profit generated by Samsung since it reported 8.5 trillion back in first quarter of 2014. The market consensus for operating profit of Samsung in the second quarter of 2016 is 26.2 percent up from the predictions that were made three months earlier. Some local companies such as Hi Investment & Security Co. had predicted Samsung to be up by 21 percent in the second quarter of 2016 with an operating profit of 8.1 trillion.
The operating profit for Samsung in the period January – March’16 moved up to 11.65 percent from previous year resulting in 6.67 trillion. In the same quarter, the net profit for Samsung moved to 13.55 percent resulting in 5.25 trillion. On the contrary, Samsung reported operating profit of 5.98 trillion in the first quarter of 2015. The net profit also experienced a fall by 39 percent in the same quarter of last year due to weak sales in mobile business.
Rounding up in 2015, the net profit for Samsung was 18.53 percent resulting in 19 trillion. The overall operating profit was reported to be 26.4 trillion, which was 5.55 percent up from 2014, but the sales reportedly dropped by 2.69 percent that led to 200.6 trillion.
Industry watchers predict that Samsung has raked in an operating profit of 4 trillion solely from its mobile division for this year’s second quarter.
Samsung mobiles posted 3.89 trillion as operating profit during the period January – March 2016. It was up by 42 percent from previous year. The shipments of Samsung’s flagship models such as the Samsung Galaxy S7 are responsible for dragging the company back on track. The series has undoubtedly performed beyond everyone’s expectations.
The powerful latest flagships, Samsung Galaxy S7, and Galaxy S7 Edge were released this year in March. According to sources, the combined shipments of these two models hovered at around 15M units in the period April – June. Also, the sales of S7 edge surpassed the Galaxy S7 despite the former being more expensive. Samsung reportedly sold 81.8M smartphone units across the globe in the first quarter of its release.
In the final analysis, the dramatic boost in sales of the S7 range is responsible for a highly profitable Samsung Earnings 2016.