The South Korean giant, Samsung has revealed its financial results for Q1 of 2016, and they have some news to cheer for with the slight increase in its overall revenue. The company has reported revenues of KRW 49.78 trillion a 5.7% jump YoY while the operating profit for the quarter was KRW 6.68 with an increase of 12% YoY. The net profit for the quarter ended March 31, 2016, was KRW 5.25 trillion with an overall growth of 14% YoY.
The IM sector that comprises of Mobile Communications and Network Businesses has reported operating profits of KRW 3.89 trillion a 42% jump in the operating profits when compared to the KRW 2.7 trillion Year-over-Year. The company says that the early launch of its flagship Samsung Galaxy S7 and S7 Edge has led to the profit growth, and it was well accompanied by the increased sales of OLED panels and stronger performance in the semiconductor division that includes Memory and System LSI.
Samsung launched the Galaxy S6 & Galaxy S6 Edge last year in February, but it was available only in April, but this was not the case with the Samsung Galaxy S7 and S7 Edge as the company focused on the early introduction of the devices. The results are pretty clear if you compare it with other flagships like the LG G5, Xiaomi Mi 5 and Sony Xperia X series that were announced at MWC 2016 but are still awaiting for their global availability.
Samsung has edged over other brands with the early launch of the Galaxy S7 and S7 Edge, which in-turn resulted in the sales boost and increased the profitability of the company. The brand also expects to maintain the solid profitability with the sales of the Galaxy S7 series and also to target the low-end to mid-range segments with the Samsung Galaxy A and J series in Q2 of 2016. Samsung is all set to launch its next flagship Samsung Galaxy Note 6 in the Q3 2016, and if the company hits the right chord, it will only add to its increased profitability.
Yesterday, Apple reported its first ever sales decline since 2003 and reported a decrease in revenue of 13% in Q2 2016 when compared to the Q2 of 2015. The primary reason might be the no major iPhone launch in this period and the launch of 4-inch iPhone SE that we feel was slightly overpriced. The brand is gearing upto launch the iPhone 7 in Q3 2016, and it thinks this will turn the tables for Apple in gaining the profits back.