Early Launch of Galaxy S7 Boosts Samsung’s Q1, 2016 Profit

Galaxy-S7-edge

The early launch and strong sales of the Galaxy S7 and Galaxy S7 edge have helped Samsung’s mobile division to post its highest profit in almost two years. The Korean giant posted an operating profit of KRW 6.68 trillion on revenues of KRW 49.78 trillion — an increase of 12 percent and 5.7 percent, respectively.

The company notes in its announcement that the “early launch and successful sales” of the Galaxy S7 and Galaxy S7 edge, increased sales of OLED panels, and expanded supply of 14nm based chipsets helped the various divisions of the company. Samsung Display, however, saw a sharp decline in its business due to the falling demand of the LCD panels.

One thing worth noting here is that Samsung launched the Galaxy S7 earlier than usual this year. The company usually launches its new flagship handsets in early Q2 of every year, but this year, it launched the Galaxy S7 in early March. While this did lead to the company in increasing its profitability, it will likely lead to a drop in its revenue in the second quarter of the year.

For the next quarter, Samsung expects “solid earnings” by expanding the sales of the Galaxy S7 and Galaxy S7 edge, along with improved profitability in its low- to mid-end smartphones. However, the Korean company does anticipate a slow down in the smartphone market and a negative growth in the tablet market.

[Via Samsung]

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