Samsung has announced it forecast of the quarterly results and it is a mixed bag of results. While Samsung’s is slowly recovering, analyst have pointed out that it isn’t recovering fast and the quarterly results show the same.
The south Korean tech company has released a forecast that it expects an operating profit of 6.1 trillion won. The analysts from Bloomberg and Reuters have conducted a poll and the average profit figure came in at 6.6 trillion won. Going by the current conditions, looks like Samsung might not be able to meet the estimates of the current quarterly results.
But the good news is that the profits have actually increase when compared to the same quarter last year and the quarterly result have shown a 15% increase in the revenue. The operating revenue is at 53 trillion won.
Samsung has done good in the mobile segment and semiconducting division. The overall demands for smartphones have been slow and that is evident from the performance of HTC and Sony. But then again Samsung has registered a slight growth despite the hardships.
It has been battling apple in the high end market and cheap phones from Chinese rivals which have been eating into its sales from the past 2 years. the quarterly results were also hurt by the weak demand for the flagships such as the galaxy s6 and s6 edge. To move the phone faster, Samsung had to cut the prices drastically that increased the sales but decreased the profit attained per unit sold.
The number of smartphones sold has risen but again these phones are of mid ranged and low end. The profits per unit is very low compare to the high end phone where at least a profit of $200 can be attained.
The company is on a path to regain its lost glory and the next weapon in its arsenal is the galaxy s7. Samsung could get into deep trouble if the galaxy s7 fails to meet the expectation.
