Samsung turning the ship around, posts $6.3 billion quarterly profit forecast

Samsung turning the ship around, posts $6.3 billion quarterly profit forecast
Samsung's restructuring efforts are finally bearing fruit, it seems, as its shares skyrocketed almost nine percent overnight, after it delivered its profit guidance for the third quarter. It is not easy to turn such a big ship, but Samsung is apparently on the right track, collecting 51 trillion won ($43.9 billion) of revenue, on which it has made a median of 7.3 trillion won ($6.3 billion) in profit.

Analysts are a cautious bunch, and warned that this stellar profit recovery is due to strong component sales, like mobile displays, as well as a favorable exchange rate, rather than some big jumps in phone sales, but that only comes to prove that Samsung's efforts to diversify from over-reliance on its mobile division are paying off. Still, phone sales seem to have gone up, too, mainly from mid-range phones, rather than the high-ends. 

On the high-end, the Note5 is said to be selling well, but the curved S6 edge seems to be lagging, due in part to production constraints - there hasn't been enough flexible display yield from the get-go, but hopefully Samsung will resolve the bottleneck this quarter, as it now also has the S6 edge+ to produce in mass quantities now.

source: Samsung



1. mrdumbs

Posts: 5; Member since: Feb 12, 2015

how bout releasing the n5 in europe

25. SamsungPhanboy

Posts: 765; Member since: Mar 31, 2015

I'm really surprised they didn't release the N5 in europe. I'd say it's their best device yet.

28. MCrapp

Posts: 318; Member since: Apr 07, 2013

Best android device ever!I'm very happy with Note 5 (920C works perfectly in EU)

65. AnTuTu

Posts: 1620; Member since: Oct 14, 2012

And this is how you shut the mouth of haters hahahaha. Probably the most innovative and well deserved company on the planet. Keep up the great work Sammy.

2. Ordinary

Posts: 2454; Member since: Apr 23, 2015

Samsung™ makes money with Android™

4. Finalflash

Posts: 4063; Member since: Jul 23, 2013

Lol probably won't be seeing him here.

7. Ordinary

Posts: 2454; Member since: Apr 23, 2015

Well he just got spawned in the same place with the same answer lol

3. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

Apple is one of Samsung biggest customer for components.

20. coldspring22

Posts: 349; Member since: Feb 28, 2015

Yes that's unfortunate for Apple. When is over-reliance on your arch rival is supposed to be a good thing?

24. SamsungPhanboy

Posts: 765; Member since: Mar 31, 2015

It's actually great business. It is most likely cheaper for Apple to outsource than vertically integrate. Additionally, it keeps Samsung and Apple in good communication amidst a very competitive environment. Trust me, it's far from unfortunate.

40. BaffledTruffle

Posts: 523; Member since: Dec 07, 2013

Isn't it unfortunate for hardcore fans? They can war against each other, but the companies they're warring for are just sitting in their premiere offices: chilling, raking in all that money.

5. Kumar123 unregistered

$43.9 billion of revenue, on which it made $6.3 billion in profit. Isn't the profit percentage a bit low? I wonder how many Note 5 they sold this year. Each year they posted how many note they sold but they stop doing that after note 4.

10. almostdone

Posts: 448; Member since: Sep 25, 2012

It means they're not ripping off their customers like the fruity company. Samsung spends a lot more in R&D which is good for everyone.

23. ph00ny

Posts: 2048; Member since: May 26, 2011

No need to explain it to the troll. He just hates samsung

31. Zylam

Posts: 1817; Member since: Oct 20, 2010

And you have direct access to both samsungs and apples books to see exactly how much each spends on r and D? And incase you haven't noticed Samsung phones aren't cheap, they're priced as high as iPhones when they come out, so how exactly is Samsung not ripping people off the phones are the same price and just cause they don't maintain their value as Samsung knows it's no lt apple doesn't mean they are cheap or help anyone. You people have a bias against apple.

37. Hallyu

Posts: 790; Member since: Jul 21, 2015

You got to compare profit margins between the 2 companies to see which one really sucks people blood. Yes, Samsung flagship phones price are almost as high as the iPhones, but considering Samsung spends much more money than Apple in hardware components, I don't think it's unreasonable.

49. Ordinary

Posts: 2454; Member since: Apr 23, 2015

This makes it pretty obvious who invests more: Apple (6.04 billions): Samsung (13.4 billions): What is even more funny is that Apple earns so much more than Samsung but yet they invest 2x less than them. Its clear as day who is the real rip off.

52. meanestgenius

Posts: 22187; Member since: May 28, 2014

Agreed. For the amount of money that Apple spends on R&D vs how much they make on handset sales, they are definitely ripping of their buying public. They excel only with their custom SoC, the rest is midrange at best.

55. Taters

Posts: 6474; Member since: Jan 28, 2013

Lol you got two thumbs up for that? It's clear as night and day which company spends more money on their handsets, ummm..just look at the specs. They are light years apart. Use logic for once isheep. Which of the following costs more to manufacture and assemble? 2k OHD best AMOLED in the business or a mass ordered 750p standard LCD that Lg or Samsung would never use for their own flagships because it sucks? It has no quantum dot technology or anything that would cost them anything. They just get some tv guy at Best Buy to calibrate it and sell it for a premium. 16gb of storage or 32gb? 4gb of ram or 2gb of ram? Curved display or flat display? 2550 mah battery or 1750 mah? Every single component in a Samsung device, probably even the Logo's cost more on a Samsung yet you somehow think that it's even just because they are priced similarly in one or two markets and the Sansungs are priced much lower in most other markets? Sorry but you isheep need to go back to school or go through piaget's infant development stages again. Lol

36. tedkord

Posts: 17387; Member since: Jun 17, 2009

No they didn't. They did post some milestones, but never sales numbers.

45. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Samsung always has lower profits because they spend more in R&D, have 300,000 employees, has a higher distribution metric and more. When you make your own stuff, its costs a lot of money. Samsung has a huge amount of overhead which is why they ship so many products. I can't even imagine the cost. But consider this. They make their own chips for themselves and others, they make their own batteries, their own phones, their own modems, their own fab equipment, they have one of the highest R&D budgets. It fact it is bigger than all Android OEM's + Apple combined and they have to ship all that stuff too and pay employees and I am sure there is more I don't know about. They tend to have 1/2 the profits apple has on average which is fine for a company that alone is 3 times the size, has way more products, has 3 times the employees and more.

64. coldspring22

Posts: 349; Member since: Feb 28, 2015

Yes Samsung is way more diversified than Apple, which depends on iphone for 60%? or is it 70% of it's revenue and profits. Talk about one trick pony!

11. Wulfgardr

Posts: 73; Member since: Oct 29, 2014

Now Apple is really doomed.

19. roldefol

Posts: 4744; Member since: Jan 28, 2011

Keep dreaming. Apple will make record profits from the 6S launch this year.

21. coldspring22

Posts: 349; Member since: Feb 28, 2015

Good luck with that, iphone sales always rising every single year? Only in isheep's dream! BTW iphone 6S sales in Japan is down 15% for starters. Another, Apple is cutting back on component order for iphone 6S. Maybe Tim Cook is having nightmares these days?

22. roldefol

Posts: 4744; Member since: Jan 28, 2011

In Japan, maybe. Meanwhile China and the Americas keep snatching up iPhones like they're something new. Apple has weaknesses, but iPhone sales aren't one.

56. Taters

Posts: 6474; Member since: Jan 28, 2013

Adoption rates are down vs the 6 but the PA isheep editor in charge isn't going to green light the article because it might hurt Apple. So they hid that bit of news in this article with a totally irrelevant heading. If that was the GS6 The heading would be adoption rates for the GS6 slow to a crawl compared to the GS5.

66. coldspring22

Posts: 349; Member since: Feb 28, 2015

Like what new? Unless you have pink iphone 6S, nobody can tell you are using the old iphone 6 or new iphone 6S. And Iphone users who aren't hard core isheeps can't tell much difference between iphone 6 and iphone 6S and don't care either. "Only thing that's changed is... Everything" what a joke. LMAO

67. Ninetysix

Posts: 2965; Member since: Oct 08, 2012

50. sissy246

Posts: 7124; Member since: Mar 04, 2015

You are dreaming. First it was bendgate now icrap has shutdowngate , overheatgate. Not so perfect after all.

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