Samsung Galaxy S7 and Samsung Galaxy S7 edge help Samsung report higher Q1 operating profits


Samsung reported its first quarter earnings tonight, and since we are not RefrigeratorArena or WasherDryerArena, we will focus on the numbers posted for Sammy's IM division which is made up of its mobile communications and networks business. The company reported $24.2 billion USD in mobile revenue for the quarter. That is a 6.6% gain year-over-year.

Operating profits for Samsung's mobile division came to $3.39 billion USD, a 42% gain over the operating profits reported by Samsung during the same quarter last year. Samsung cited strong demand for the Samsung Galaxy S7 and Samsung Galaxy S7 edge as the reason why operating earnings rose in the quarter. The new flagships were launched during the three month period ending last month. The two handsets are both waterproof (and don't require a flap to cover the ports), and the microSD slot has also returned.

Even though Samsung shipped 60% more handsets in the quarter than Apple did, the Korean manufacturer reported operating earnings for its mobile division that were just 24% of what Apple reported. Overall, Samsung shipped 81.9 million handsets from January through March.

Samsung expects year over year growth in smartphones to decline for the rest of the year. As far as the tablet market is concerned, Samsung expects an outright decline in demand on a year-over-year basis for the remainder of 2016.


source: Samsung via AppleInsider

Related phones

Galaxy S7
  • Display 5.1" 1440 x 2560 pixels
  • Camera 12 MP / 5 MP front
  • Processor Qualcomm Snapdragon 820, Quad-core, 2200 MHz
  • Storage 32 GB + microSDXC
  • Battery 3000 mAh(28h 3G talk time)
Galaxy S7 edge
  • Display 5.5" 1440 x 2560 pixels
  • Camera 12 MP / 5 MP front
  • Processor Qualcomm Snapdragon 820, Quad-core, 2200 MHz
  • Storage 32 GB + microSDXC
  • Battery 3600 mAh(36h 3G talk time)

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29 Comments

1. siddharthayadav202

Posts: 286; Member since: Apr 23, 2016

42% profit growth is impressive.

2. Rafishant

Posts: 396; Member since: Oct 13, 2015

When it comes to profit, Apple still stands very far from Samsung. In terms of companies sizes, Market Cap of Samsung is $152B Market Cap for Apple is $541B All in all, great job by Samsung for this quarter!

3. UglyFrank

Posts: 2194; Member since: Jan 23, 2014

I wouldn't say company size.

4. siddharthayadav202

Posts: 286; Member since: Apr 23, 2016

In profit, yes. But as a Company, Samsung is way bigger. I was amazed when I learnt thry were the ones who made Burj Khalifa.

7. quintessential

Posts: 86; Member since: Mar 11, 2015

As a conglomerate, of course Samsung group is gonna be bigger. You don't expect a company that sells everything from A-Z, from tooth paste to military hardware to be smaller than a company that only sells a few products isn't it? That would be embarrassing. In terms of revenue, Samsung group is slightly bigger, but if we are talking about pure profits generated, Samsung is definitely not up there with Apple's.

11. Johnnokia

Posts: 1158; Member since: May 27, 2012

Samsung is not bigger than Apple at all. The market cap is the actual company value, where it is the total market value of the shares outstanding of a publicly traded company; it is equal to the share price times the number of shares outstanding. Company's total asset= liabilities + stockholders' equity. In the accounting industry, assets are defined as anything that a business owns, has value, and can be converted to cash. Apple is way larger than Samsung( Almost triple the size) when we want to discuss those two concepts. However, it is true that Samsung has a much larger business categories and a higher number of employees.

12. roscuthiii

Posts: 2383; Member since: Jul 18, 2010

That's a fine job copying and pasting the definition of market cap there. Here's a copy/paste for you in return: "It is important to note that market capitalization (sometimes called "market cap") is not the same as equity value, nor is it equal to a company's debt plus its shareholders' equity (although that is sometimes referred to as simply the company's capitalization)." http://www.investinganswers.com/financial-dictionary/stock-market/market-capitalization-939 You wanna say Apple is a bigger company? That's all well and good, just keep in mind that stock value fluctuates and at any time can start hemorrhaging as we saw with Apple being devalued by $40B because of a bad quarterly report. Whereas Samsung, with its diversified business strategy in multiple markets, services, & products isn't as susceptible to its valuation crashing. So, yeah Apple is "bigger" but Samsung's enterprise value likely means they're worth more.

18. Macready

Posts: 1821; Member since: Dec 08, 2014

You're just quoting one definition and left out the caveat noted by #12. Looking at revenues, Samsung is larger still.

24. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

What? Dude, Samsung is a physically larger company than Apple is. I'm only talking about Samsung Electronics. I'm not talkign about Samsung LTD. To different companies that shae a name. Samsung Electronics alone has 300,000 employees and makes more than 20 different products. All that production costs money. It also means more R&D spending, which is something foreign to Apple in general. I don't give a carp how much money a company makes, if they continue to sell featureless, crappy, fragile products. Oh and when you sell the same phone 3 times in a row and then 2 times in a row, how much does it cost to sell the same product over and over? Zero! That's why Apple lost over 10M units of sales YOY and Samsung lost only 500k.

23. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Which doesn't even matter. All that money and they still won't make a first rate product.

17. ibend

Posts: 6747; Member since: Sep 30, 2014

lower profit is a good things for customer, since we dont need to waste money to buy overpriced junk.. while doing that, samsung still generate huge profit and invest nice amount of it on R&D department, and they'll make earth a better place

22. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Its easy to make higher profits when you sell a $200 phone for $700. When you don't make your own products and outsource everything. When you only have 99,000 employees. When your R&D budge for 2 brand new phones is 0%. What good is havign more profit when you dont do nothign with it, but make the same phone over and over again? If Apple made more than one phone, there margin would be less. Its takes a lot of money to ship 40+ different phones in the whole world vs one phone to selective markets in the same world. Until you guys understand this, your talk about profit margin only sounds good to clueless zombies like yourself.

27. yoosufmuneer

Posts: 1518; Member since: Feb 14, 2015

Look at iPhone 6s hardware and its price. All Apple products are overpriced (except for the SE). They have huge profit margins and their products sell really well too.

5. Tziggy14

Posts: 624; Member since: Sep 02, 2014

Samsung, is, has been, and will always be the No.1 OEM. The S7 proves exactly why they deserve that profit raise.

6. sniper1087

Posts: 537; Member since: Dec 31, 2011

They are good but I am not sure if No. 1, I mean in your case is subjective since you like the company products, in my case of course not, it feels the S7 was a rehash S6 and I see it everyday and still not convinced maybe in the future when their software changes and their products dont suffer like they do after a couple of months starting to slow down like the usual and yes I have seen plentey of S7 showing those issues, having my eyes at the moment on Sony and maybe HTC to bounce back.

9. Jason2k13

Posts: 1462; Member since: Mar 28, 2013

So why do people keep buying Samsung if all their phones slow down?

10. WeezyF

Posts: 155; Member since: Jul 09, 2015

Thank u!

13. twens

Posts: 1175; Member since: Feb 25, 2012

It's an isheep counter attack to troll Samsung users. Lol

14. Shocky unregistered

Yep, if anything Samsung flagship devices get faster these days as they refine the software.

21. k4ever

Posts: 240; Member since: Oct 08, 2014

Because he is FOS. Samsung phones don't slow down. Neither do their tablets. My Note 4 is running faster now than it did when I first bought it. I am also getting better battery life than when I first bought it. Like I said, he is FOS and probably just regurgitating something he read on an Apple blog.

15. Shocky unregistered

Have you been in a weed induced coma for the last 6 years? They don't slow down, this isn't 2010.

26. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

The S6 us a rehashed S6? Really? So what has the Sony Xperia been for the Z1/2/3/4? The HTC M(8/9/10) are mostly identical. The iPhone 6's...ALL OF THEM are impossible to tell apart unless you buy a specific color. iOS9 is the worse release mobile OS in HISTORY...having already getting 10 updates with 3 being major firmware revisions in just 7 months. Am curious, how fast does a phone really need to be? Even if it takes a blink of an eye longer for something, what's your hurry? If your phone loads an app a blink of an eye faster, does that make your devic eof chocie betetr than mine? Because yours may get a higher benchamrk score, does that means it better than mine?NO! So what exactly is yoru point?

29. sniper1087

Posts: 537; Member since: Dec 31, 2011

I am not sure why people keep mentioning apple which in the first place I did not even mention, I mentioned the slow down as a fact I work on the business and see the phones constantly with problems, the Note 4 as an example which my boss had after the lollipop update the phone had issues while texting constantly freezing, the S6 had lock downs on and poor battery life and yes you are right other companies rehash a lot, but the design on the S7 I constantly get people confused between it and the S6. The fact that samsung loves to release an update to the next iteration just before they release the next generation so people that see problems with their phone make the switch marketing genius indeed.

8. DirtyDan23

Posts: 280; Member since: Aug 12, 2014

Nifty

16. ibend

Posts: 6747; Member since: Sep 30, 2014

long time no see :-/

19. gadgeteer

Posts: 45; Member since: Sep 06, 2014

Why bring Apple into it? So what if Apple makes more profit ? Bottom line is Samsung offers better value for money - and does so while remaining profitable. Apple is done. Their best days definitely behind. Watch them falter and fall away.

20. oozz009

Posts: 520; Member since: Jun 22, 2015

They didn't even gave the number of sales for the GS7: disappointing. The way I see it is that Samsung just managed to have a worser quarter than Apple, their new flagship just got released recently and that was still not enough to drive their profits high up!! ...in other words, next quarter seems really slim for Samsung... (

25. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Looks like Samsung sold more than 10M of the S7. They may have only shipped 10M in 20 days, but they sold far more than that. I don't care how many they sell. As long as Samsung gives me true value for my money, I will keep buying a new phone from them every year until someone makes something better. Which I don't see happening. But the next Galaxy S and Note really need to make some impressive moves because the Note for me has gotten stale. If the Note 4 didn't have such a performance problem, I would have just kept it vs gettign the Note 5. Maybe if I had went from the Note 3 to the 5, I'd feel different about it. Samsung needs to be a trend setter now. All their phones need to be 64GB minimum. After all since they make their own storage, it costs them nothing extra no matter how larger the capacity is. They've already made the move to make the battery bigger in a smaller space, keep this trend going. Stop trying to match any other OEm spec for spec. make your own device and let everyone follow you. Please bring back some of the S4 features, but make them more usable and more automatic, and less resource intensive. Keep working hard to make TW more cleaner and faster. A dual-edged Note 6 would be awesome, but please beef up your own CPU and stop using SnapDragon. Keep improving the cameras, keep improving the displays, keep improving the designs and your may remain flat, but at least they wont be goign down. The "apple" has fallen from the tree and once it hits the grown, there is no going back. This is your chance to make some "applesauce" and move us to the "next big thing".

28. jeroome86

Posts: 2314; Member since: Apr 12, 2012

Looks like phones becoming there bread and butter. Wish they wouldn't got complacent with their other electronics. My monitor stop working right after warranty and DVD player only lasted 2 years. Now I'm hearing about exploding washing machines. Use to be die hard Samsung for tvs but went with a LG model last time.

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