Samsung is having a bumpy ride in terms of revenue since the launch of the galaxy S5. Profits growth have largely subdued with the occasional glimpse of hope in the results. Now analysts have predicted that the launch of the Galaxy S7 has largely helped the Korean conglomerate and riding on this success, the profits are likely to surge.
Samsung has famously said in the past the resisting change will ultimately make it perish. It has indeed changed with the Galaxy S6 that made use of premium materials like glass and metal instead of cheap plastic.
Previously, trade experts have predicted that Samsung will make a profit of 4 trillion won owing to disappointing market condition plaguing with slow growth and soft demand across devices and smartphone components. But the same analysts have updated their prediction and now they quote that Samsung would incur a profit of 6 trillion won ($5.14 billion) in the Q1 of 2016.
This estimate is based on figures from 24 brokerage houses. For comparison sake, the Galaxy S7 maker earned a profit of 5.98 trillion won in the same quarter last year. It also announced that the revenue will see a sharp dip in the coming quarter due to soft demand. But beating analyst expectation and its own estimates, Samsung is performing reasonably well and is also registering a slight profit growth. however small, the growth is significant given the current market conditions.
The actual results will not be available until the 7th of April though.
This growth is due to the fact that Samsung managed to sell 1 million Galaxy S7 and S7 Edge every 48 hours since the day they were available. The other reason being the currency exchange value. The won (Korean currency) is significantly weaker than the US dollar. Since Samsung does most of its business outside its home country, the exchange rate will bring in more revenue compared to last year.
Whatever might be the reason, this is good news for Samsung and its investors.
