Galaxy S7 phones help Samsung deliver a strong first quarter

Samsung Electronics has reported its first-quarter financial results. The company made an operating profit of 6.7 trillion Korean won ($5.9 billion) on revenue of 49.8 trillion won ($43.7 billion). Operating profit was up 12% over the same time a year ago, and revenue increased 5.7%. The company slightly beat its own guidance of 49 trillion KRW in revenue and 6.6 trillion KRW in profit.

The company said its Galaxy S7 and S7 Edge smartphones led its earnings growth, thanks to an early launch and strong sales of those products. Samsung also said its IT and Mobile Communications Division improved its cost efficiency by simplifying its lower-end smartphone product lineup.

Samsung claimed that its semiconductor business made up for a soft seasonal demand for memory products by moving more "high value-added products" and lowering costs by migrating to new technologies for its production of DRAM and NAND chips.

The company's display panel business saw a drop in earnings, thanks to what Samsung describes as "a sharp decline in LCD panel earnings." The success of the Galaxy S7 smartphones helped the company move more OLED panels, though. Samsung says its LCD production experienced "temporary yield issues while adopting new process technology," and its earnings also weren't helped by a reported TV panel price decline.

Samsung says it expects a rosy second quarter spearheaded by continued strength in its mobile device and semiconductor businesses, along with improvements in the results of its consumer electronics and display panel businesses.

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    • djayjp
    • 3 years ago

    The days of large margin profiting off of high priced phones is over now that the Chinese manufacturers have stepped up their game. When you can buy a flagship phone (Xiaomi mi5) for about half the cost of a comparable flagship (Samsung Galaxy S7) from a traditional leader, you know the golden goose has been cooked.

      • End User
      • 3 years ago

      The post clearly stated the “Galaxy S7 and S7 Edge smartphones led its earnings growth, thanks to an early launch and strong sales of those products.”

      Samsung “expects a rosy second quarter spearheaded by continued strength in its mobile device” business.

      The golden goose keeps on giving.

    • deathBOB
    • 3 years ago

    Not surprised about the LCDs and TVs. Awesome TVs are so damn cheap right now.

    • JalaleenRumi
    • 3 years ago

    Samsung S7 Edge is one of the best looking device there is. The Edge gimmickry is pretty cool as well. I liked the LG V10 second screen, but this too is awesome.

      • deathBOB
      • 3 years ago

      I’m not sure how I feel about the curve, but the display is ridiculously good.

      • derFunkenstein
      • 3 years ago

      Plus it has a battery that should last all day, something that drove me running and screaming from Android in the first place.

      • slowriot
      • 3 years ago

      Except its awful ergonomically. Ok, maybe that’s just me, but the screen wrapping to the edge is a major negative. How do people use those phones with one hand and not constantly hit the edges of the screen? At least it isn’t super slippery like my Nexus 6P.

      I really wish I could get something that lives between a S7 and 6P in size, but doesn’t have the edge-to-edge screen like the S7 Edge, and a shape/texture more like the Nexus 5… And stock Android.

        • [+Duracell-]
        • 3 years ago

        A case alleviates most issues with the edge screen without sacrificing its functionality.

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