Samsung just showed the world its report card for the second quarter which ended on June 30. Unsurprisingly, Samsung is doing better than analyst’s expectation riding on the sales of its bumper flagships, the Galaxy S7 and S7 Edge. On the whole, Samsung has managed to sell more than 80 million smartphones worldwide and retained its place as the top dog in the industry. Huawei too had some good growth and is eyeing Samsung’s position but it will be long and hard before it can overtake the Korean giant.
As far as the numbers are considered, Samsung reported a revenue of $45.3 billion and a healthy profit of $7.2 billion. Compared to last year, the revenue increased by 5% and the net gains was at an astronomical 18%.
After the slump in Samsung smartphone sales starting with the Galaxy S5, this is the first time that Samsung has registered such a phenomenal growth (though the company had profits last quarter, the numbers were modest).
“Additionally the company achieved growth in the second quarter by maintaining the profitability of mid- to low-end models, such as the Galaxy A and J series, and improving the product mix by raising the sales proportion of the Galaxy S7 edge to over 50 percent.”
All this was possible due to the Galaxy S7 smartphone and the push into non-hardware services such as the Samsung pay and Gear VR. On the other hand, Apple is having a hard time selling its wares to the people. It still managed to beat the analysts’ expectations but clearly the craze that the iPhone had in the previous years is gone.
Samsung isn’t resting on the laurels. The upcoming Note 7 promises even more. It builds on the design and features that S7 has established and is adding more like the iris scanner, enhanced s-pen productivity features. The third quarter will be interesting with the clash of the iPhone 7 and the Note 7.
Stay tuned for more updates.