Samsung‘s financial results were boosted considerably thanks to the Galaxy S7 smartphone’s incredible sales: operational profit in the second quarter will surpass 2015’s second quarter by 17.4 %.
Best result in 2 years’ time
Between April and June, Samsung managed a 8.1 trillion won (6.3 billion euro) operational profit, if the company’s preliminary results turn out to be correct. This would constitute the company’s best result since 2014’s first quarter, when 8.5 trillion won (6.6 billion euro in today’s exchange rates) was added. If confirmed, these results are better than expected, although turnover has not followed suit. It seems turnover will reach 50 trillion won (38.8 billion euro).
Over the past few months, Samsung took advantage of the Galaxy S7 smartphone launch, with about 15 million devices sold in the past quarter.
Questions whether results can be maintained
Analysts wonder how long the South Korean company can maintain the current success, because the worldwide smartphone market seems to dwindle as an increasing number of consumers delay the acquisition of a new device. The company also suffers from increased competition: from Apple at the high end of the market (although the American company faces criticism for a lack of innovation) and Chinese competitors at the other end of the market (like Huawei, Oppo and Lenovo).
The final second quarter results will be revealed at the end of July. Korean law prohibits the use of expectations, with limits on both end of the scale, a popular method in the West.
