Samsung expects 10 percent profit growth on better-than-expected Galaxy S7 sales

By , Apr 7, 2016

Samsung Galaxy S7 Edge teaser 001

According to preliminary results posted Thursday, there’s a light at the end of a long tunnel for Samsung Electronics and that light is the new Galaxy S7 flagship smartphone. After more than two straight years of decline in its mobile division, the South Korean firm is now projecting more than ten percent profit growth for the first quarter of 2016, beating market estimates.

The Galaxy S7 and Galaxy S7 edge were announced back in February ahead of their March 11 debut. Both phones, which have managed to address some of user complaints like memory expandability, were met with mostly positive reviews. Thus far, the new devices have moved three times as many units in their first month compared to their predecessor,  the Galaxy S6/edge series, according to Bloomberg.

The new Galaxies have sold an estimated nine million units during their first month (Samsung does not divulge smartphone unit sales for competitive reasons), or three times more than the previous-generation Galaxy S6 in the same time-frame. By comparison, Apple reported 13 million iPhone 6s and iPhone 6s Plus sales in just one weekend.

“Production of curved displays for its Edge version also went more smoothly this time, avoiding the hiccups that plagued last year’s wraparound-screen line while holding down costs,” said the news gathering organization.

The new Galaxy, of course, has a head start on Apple’s forthcoming iPhone 7, which is expected around the usual fall timeframe like prior iPhones.

Samsung is projecting consolidated operating profit of 6.6 trillion Korean won, or $5.7 billion. Not only would that figure represent a 10.4 percent increase from the year-ago quarter, but is also above general consensus of 5.53 trillion won, according to polls conducted by Bloomberg.

Some analysts quoted in the article have reservations as to the Galaxy S7’s ability to sustain strong sales amid factors like strong competition from Huawei, Xiaomi, Apple’s cheapest iPhone yet, the new iPhone SE, and depressed industry demand.

Source: Bloomberg

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  • Rodney Coleman

    Imagine if they kept it plastic…. Samsung still sucks as a OS

  • The King

    I have an Edge S7 and their Touch Wiz OS does suck. It’s still decent with customization.

  • Rowan09

    Come on how stupid do they think we are. They started everywhere with buy one, get one free deals including the VR, so of course it would seem like high demand. I bought 2 sold the first one and waiting on my gift card for the second one which is totally free. It’s going to take me about 2 months to get the card, so it will seem as if it’s 2 device sold for full price. I like the S7 but touch wiz slows the phone down significantly so I use it as my forth line along with my iPhone.

    • tariq

      U basically lose no money bc u make your money back for the 1st phone by getting the card. And second one is paid of cuz u sold it. Win win! And u get two VR gears.. And sell one of em and make more money

      • Rowan09

        Exactly. It’s a win for me, but when they setup sales for the quarter it’s not an actual reflection is my point.

      • tariq

        I think It’s a win win for everyone

    • Alexander Figueroa

      U righ. I got the s7 edge because # 1 camera is awesome and #2 promotions. Free netflix for one year and vr glasses free. Ios still sucks big time.

  • Gabriel Anaya

    Not all that surprising. After the declines they went through, not much else to go other than up.

  • Tommy

    Why is this even news on iDB other than the fact that you’re trying to attract trolls or another iOS versus Android war.