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Samsung's S7 gamble delivers biggest quarterly profit in two years
There’s a lot to be said for listening to your customers. Following some of the debatable choices made with the Galaxy S6, Samsung fans were very vocal about what they wanted in the S7. Samsung, by and large, satisfied those demands and oh how the people rejoiced. But they didn’t just rejoice, they also bought the Galaxy S7 and S7 Edge in droves. Such large droves that Samsung has just posted its largest quarterly profit in over two years.
In its Q2, 2016 earnings statement, Samsung saw a 5% increase in revenue and an 18% increase in profit. Samsung’s focus on the high-end and “a streamlined mid-to low-end smartphone lineup” helped the manufacturer ship 80 million smartphones with a lot of them being high profit margin flagships. For the first time in a long time, Samsung Mobile was responsible for actually making money.
In fact, Samsung Mobile made up more than half of Samsung’s revenue and profit last quarter. This represents a massive turnaround from recent years where the mobile division has been on life support courtesy of Samsung’s other profitable businesses. Samsung’s semiconductor and display divisions also performed well while consumer electronics were largely stable. Samsung is expecting strong performance from the rest of year, which will be bolstered by a strong Korean Won.
Do you expect Samsung Mobile’s return to profitability to last? What is your all-time favorite Samsung phone?