Everyone out there is still trying to figure out what the trajectory will be for Samsung’s Galaxy S6, which the company has stated will be its best-selling smartphone ever. However one analyst, Neil Campling of Aviate Group stated that things for Samsung aren’t going so well as far as the sales are concerned as they are falling short of expectations.
However on the other hand Mehdi Hosseini of Susquehanna Financial Group claimed that there is a positive rating on the shares and that there is no shortage of demand although there may be a shortage of supply.
Moreover a meeting held in Korea this week reported that demand for Samsung’s Galaxy S6 has continued to increase and exceed the expectations but the shipment of units is limited due to the shortage of supply. Even then they have expected that the total unit shipments of the Galaxy S6 will reach 48 million in CY15 with the Galaxy S6 Edge exceeding the 50 percent in 2H.
So unlike the previous Galaxy S4 and Galaxy S5 there could be a longer tail to the overall shipments of the Galaxy S6 which is quite good for the ASPs and margin profile.
Mr. Hosseini also claims that the success of Samsung’s Galaxy S6 Edge alone may not be enough to raise the confidence in Samsung’s longer term earnings power. However we need to realize that the chip division at Samsung is in really good shape and is doing very well.
Apart from this the chip division will also get most of Apple’s business for the expected upcoming A9 microprocessor for the new iPhone and iPad. It has been speculated that 70 percent of the A9 production will go to Samsung with TSM getting the remaining 30 percent. Apart from this the South Korean giant is very close to completing the development of its single chip Exynos solution.
