Samsung has reported healthy growth in its earnings for the first quarter of 2016 which the company attributed to the strong response generated by its Galaxy S7 series.
To put in figures, revenue generated by the South Korean conglomerate stands at about $43.7 billion with profits accounting for an approx. $5.8 billion. Revenue from the mobile division alone stands at $24.2 billion which is 6.6 percent higher compared to the same period a year ago. Similarly, profit from its mobile sales is $3.39 billion, which is a staggering 42 percent higher than what it was a year ago.
Samsung had launched its 2016 flagship smartphones a bit earlier. The duo was available to order almost immediately which otherwise generally takes about a few weeks. It seems those efforts are paying off with the company claiming high demand for its Galaxy S7 series, particularly for the S7 Edge. In fact, the strong demand for the S7 range is already showing in the first quarter earning results and has contributed to the good showing of the IT and Mobile Communications division as a whole. Samsung had launched the S7 and S7 Edge on February 21 during the Mobile Word Congress event.
Also contributing to the success story is its reorganising efforts in the mid-to-low-end smartphone segment exemplified by the Galaxy A and J series of devices. With demand for smartphones projected to remain flat during the second quarter while tablet demands likely to plunge further, Samsung is banking on strong demand for its latest flagships along with the mid-to-low-end devices to keep up with the good showing.
Elsewhere, Samsung’s display panel business suffered a bit with demand for LCDs declining a bit due to low seasonality though better demand for the OLED panels pulled things up here again. The company also reported positive results in the other segments as well. That includes its semiconductor business – both DRAM and NAND – posting healthy margins despite the drop in PC sales.