New flagships help Samsung report its largest quaterly profit in the last nine months

New flagships help Samsung report its largest quaterly profit in the last nine months
Starting from scratch and redesigning its flagship phones has led Samsung today to report its best quarter in the last 9 months. Samsung has reaped the benefits of strong sales for its metal clad Samsung Galaxy S6 and Samsung Galaxy S6 edge. The company reported profits of $5.64 billion USD for the quarter that ended last month. The mobile division reported operating profits of $2.6 billion USD in the same time period. That is the largest operating profit for the mobile division in three quarters.

Thanks to orders from smartphone companies, Sammy's chip business is in the chips, producing operating earnings of $2.7 billion USD for the quarter. But it is sales of the Samsung Galaxy S6 and Samsung Galaxy S6 edge that have the company expecting further gains for the April-June quarter. According to Samsung Vice President Park Jin-young, "Galaxy S6 sales have been going as well as expected, while demand for the Galaxy S6 edge have been better than anticipated." This confirms reports from earlier this month that said that Samsung brass have been caught by surprise at the success of the Galaxy S6 edge and hadn't ordered enough units of the device initially. But Samsung executives say that this supply issue will be fixed in the current quarter.

Samsung is guiding analysts to expect a slight gain in earnings for the next quarter and is telling them to be cautious about the second half of the year. 49 analysts surveyed by Thomson Reuters expect Samsung to earn $26 billion USD for 2015, up from the $23.5 billion earned in 2014. The manufacturer sees the second half of the year, normally a time of strength in the industry thanks to the holiday shopping season, negatively impacted by a weaker Euro and Emerging Market currencies. Still, Samsung expects to sell 70 million units of the Galaxy S6 and Galaxy S6 edge combined for this year, which would be a record for the Galaxy S series.

source: Reuters

Related phones

Galaxy S6
  • Display 5.1" 1440 x 2560 pixels
  • Camera 16 MP / 5 MP front
  • Processor Samsung Exynos 7 Octa, Octa-core, 2100 MHz
  • Storage 128 GB
  • Battery 2550 mAh(23h 3G talk time)
Galaxy S6 edge
  • Display 5.1" 1440 x 2560 pixels
  • Camera 16 MP / 5 MP front
  • Processor Samsung Exynos 7 Octa, Octa-core, 2100 MHz
  • Storage 128 GB
  • Battery 2600 mAh(26h talk time)



1. ray77

Posts: 126; Member since: Nov 17, 2012

that is a good news indeed bravo Samsung!!!!!!

4. AnTuTu

Posts: 1620; Member since: Oct 14, 2012

Looking forward to see the Note 5 :)

18. Fallen1

Posts: 288; Member since: Nov 14, 2014

I hope they put as much effort as they did in S6.

17. Napalm_3nema

Posts: 2236; Member since: Jun 14, 2013

It's not, actually. PA is intentionally misleading readers, but the truth is still there. "Largest operating profit in 3 quarters" is code for "YOY decline, again."

22. ph00ny

Posts: 2053; Member since: May 26, 2011

At least you noticed this before PA did eventhough it clearly says April to June month in their copy and paste of the article.

2. GeorgeDao123

Posts: 432; Member since: Aug 20, 2013

Welcome back. Hopefully Sammy won't fail with Note5 and S7, and those won't look like iPhone. See LG makes G4? Sammy must do like that.

5. galanoth

Posts: 428; Member since: Nov 26, 2011

The funny thing about LG phones now are that they are just like Samsung's phones before the S6 and everyone hated on them. An all plastic build with removable back and SD card slot. Yeah you can get leather backs but you could also change Samsung backs.

6. Kruze

Posts: 1285; Member since: Dec 30, 2014

Well, its not funny. You need to understand one thing, before the S6, Note 4, Alpha, their design just sucks. Look at the S5, it must be the biggest flop design for a flagship. G4 is different, literally the same material but with different look and feeling.

3. xondk

Posts: 1904; Member since: Mar 25, 2014

Good news for samsung, but I still do not get it, that people praise the design of the sgs6 but hated the sgs5 design? remember material isn't design, and maybe that is the mistake a lot of people make? I don't know, I've compared it side by side look and feel to my sgs5, and they look very, very similar, rounded curve of edge is about the main difference, and the _SLIGHTLY_ different sheen because it uses metal, but that is about it..

13. GeorgeDao123

Posts: 432; Member since: Aug 20, 2013

I also think the design of S5 is not bad at all. People might agree with me if they held it once in their hands. I guess the problem is the ugly TouchWiz on S5 with the boring colour of action bar (sorry I don't know what to call it, my bad English) while the background of app content is black. On Note4, the background became white so the interface is quite acceptable. Plus, I don't notice any new notable features on S5 compared to S4 except the heart rate sensor and ultra battery saving mode.

14. SonyFindOneDroidple

Posts: 865; Member since: May 11, 2013

Material used can mean a lot. . Even the Note 4 with only metal frame feels more premium than any samsung phone before note 4

20. xondk

Posts: 1904; Member since: Mar 25, 2014

See..this is what I do not get..what is this 'premium' feeling you are talking about? feels that it won't break? because you know there's a reason repair shops have iphones on their signs, and this is not a jab at iphone, but the fact that metal doesn't mean it won't break. Metal, plastic can both feel fine in my hand, metal in my eyes has a tendency to become slick (and maybe that's why it breaks because it is dropped more?) So yeah, this whole 'premium' thing with metal is really tricky it seems to me a learned thing, from some unknown fact that metal is more premium, maybe for cars, a plastic car's sure won't be nice to be in a crash, metal is better, but I suppose by this thought the next 'level' of premium phones should be carbon fiber phones?

7. pendragon0202

Posts: 164; Member since: Feb 23, 2015

New flagship (S6) only started to sell from April. How did it "help" Samsung to gain more profit for the first quarter? According to report from Korea, the gain was due to the success of their mid range phones such as A, J, E series.

8. gaming64 unregistered

Guys. Note 4 or G4?

9. Kruze

Posts: 1285; Member since: Dec 30, 2014

Note 4. But if you want a newer and a smaller phone, G4. But you should try both of them in stores yourself, that's the easiest way to know which is better for you. Only you know what's good for yourself, others will only tell you what's good for themselves. Trust your own taste.

10. hunted

Posts: 403; Member since: Sep 21, 2011

11. seven7dust unregistered

exactly YOY it's a drop in profit , but their chip division is doing well now, TVs and smartphones dropped YOY. not exactly the best news , but samsung seems to be happy.

12. AmirBudi

Posts: 88; Member since: Mar 21, 2014

"... negatively impacted by a weaker Euro and Emerging Market currencies"

15. meanestgenius

Posts: 22239; Member since: May 28, 2014

Great job, Samsung! Keep up the good work! Looking forward to the release of the beast, the Note 5!

16. gaming64 unregistered

Day 26... No sign of SuperNova. phoneArena is recovering.

19. abhi24

Posts: 18; Member since: Mar 23, 2014

Misleading article. Another YOY drop in revenue. 57% drop in operating profit for mobile division from 2.74 trillion won in Q1 2014. Samsung is going downhill. This article is totally misleading. Biased writer.

21. BobbyDigital

Posts: 2125; Member since: May 29, 2014

Going downhill? That's hilarious. Do you actually know how big Samsung is? How many other products they create and sell? If you did, you wouldn't make such ill-informed comments.

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