AH 2015 Samsung LOGO-7

Samsung’s Third Quarter Finally Sees An Earnings Hike

October 28, 2015 - Written By Phil Bourget

Samsung has been a name among Android manufacturers for many years, dating back to its massive success with the original Galaxy S smartphone in 2010.  But as of late, Samsung, with its high-priced devices and lessening market share, has slipped in the earnings department as well as shareholder trust.  This should be no news to anyone, but Samsung’s upcoming earnings report due out Thursday October 29, looks to have a positive side.  Samsung is expected to make a profit. Yes, for the first time in two years, Samsung looks to not lose money in its various manufacturing departments.  The company is expected to announce a profit of 6 trillion Korean won, that’s $5.3 billion USD converted, as well as a total revenue of 51 trillion won, roughly short of $44.5 billion USD.  Those are a 42% and 7.1% increases respectively over the previous year’s numbers, but what has that all got to do with Android?  Quite a bit.

Samsung manufactures processors, the Exynos line, as well as semiconductors, DRAM, and AMOLED display panels, all of which can be used in their and other companies’ smartphones and tablets.  Previously, we’ve seen Samsung fall short in Asia’s race to be top seller simply because according to consumers, their $700+ smartphone is just as good as a sub-$300 device from another OEM which might not use any of Samsung’s parts.  And, even though Samsung’s 2015 flagship lineup was twice the size it typically is, featuring edged variants launching alongside the traditional Galaxy S and Galaxy Note devices, Samsung’s profit looks to come a little from that, but not quite.

Samsung’s typical release for their fall flagships, the Galaxy Note of the year, falls during IFA in Berlin at the beginning of September.  Days later, Apple announces whichever revised device they will sell until that time next year.  That’s undercutting exclusive market attention, as well as advertising time.  This year, Samsung opted to launch in August, giving the company’s fall flagships a month of primetime before being taken head-to-head with the likes of Cupertino’s best.  But that’s not all that helped Samsung this year. Samsung also launched Samsung Pay, its answer to Apple Pay, and alternative to Google’s Android Pay and LG’ rumoured ‘G Pay‘.  Samsung Pay launched initially in South Korea, followed by the United States, and since launch, it’s gotten a million users in Korea as well as a growing total in America.  But it’s just another wallet app you can substitute, or altogether not use, yes?  Yes, but not entirely.  Samsung Pay is pre-installed in some of the newer updates to their Galaxy line’s firmware, and that helps.  The fact that it only comes on a Galaxy also keeps the product in the family, rather than letting someone use Samsung Pay on an HTC One A9, once it comes out.  But, like all speculation, the official report which is due out on Thursday will tell the whole story.