As most of you know, Samsung has introduced their new Galaxy S7 flagship smartphones back in February during the Mobile World Congress (MWC) in Barcelona. The company had high hopes for these two devices, and were expecting good results in the first quarter of this year. Well, the company has published the Q1 2016 results, and it seems like the estimates were quite accurate, read on.
Samsung is one of the largest tech companies in the world, and they dabble in pretty much everything, but we'll try to focus on what's important to our site, so we'll talk mostly about Samsung's Mobile division. The company has reported $24.2 billion in mobile revenue for the first quarter of this year, which is 6.6% more than they reported in the same period last year. As far as operating profits go, Samsung Mobile reported $3.39 billion, and this number is extremely important. Believe it or not, Samsung Mobile's operating profit in Q1 2016 is 42% higher than in the same period last year, which is staggering. The company even mentioned the Galaxy S7 and S7 Edge as the main reasons why that is, they said that the demand for their new flagships is really strong, which essentially means that the sales beat the estimates this time around.
"Looking ahead to the second quarter, while demand for smartphones and tablets is forecast to remain flat due to continued weak seasonality, the worldwide rollout of the latest flagship models as well as an increase in shipments of the mid-to-low-end Galaxy A and J series are expected to help the company maintain robust sales momentum and profit…As for the year ahead, Samsung anticipates softening demand in the smartphone market and negative growth in the tablet market. The company will reinforce its leadership in the premium smartphone segment on the back of the Galaxy S7 and S7 edge, while continuing to increase volume and improve profitability in the mid-to-low-end segment. In addition, the company will continue to expand the Samsung Pay service to global markets and look into new business opportunities." said the company. It is also worth mentioning that the company reported an operating loss of $237 million in the display panel business, due to the LCD panel earnings decline. The company did, however, say that the demand for their OLED panels will continue, and that more and more companies will include OLED displays in low-to-mid range smartphones. Recent reports even suggested that Apple might be one of Samsung's customers for OLED displays, but we'll see.
So, it seems like things are looking up for Samsung. As most of you know, the company has faced constant declines in profit until they decided to re-invent the design of their devices, releasing Galaxy S6 and S6 Edge last year was a good start for Samsung, and it seems like the company hit just the right spot when they released the Galaxy S7 and S7 Edge two months ago. We'll see what happens by the end of this year, and how long will Samsung be able to ride on the success of the Galaxy S7 and S7 Edge. That being said, if you'd like to take a closer look at Samsung's sales and operating profit for 2014, 2015 and 2016, check out the image down below.