Samsung Electronics attributes its first quarter success to the early launch and strong sales of its flagship smartphone – the Samsung Galaxy S7 and S7 Edge.
The company announced its financial results for the first quarter ended March 31, 2016 yesterday. Its revenue for the quarter was KRW 49.78 trillion ($40 billion), an increase of 5.7% YoY, while operating profit for the quarter was KRW 6.68 trillion ($10 billion), an increase of 12% YoY.
The IT & Mobile Communications (IM) Division saw a substantial earnings improvement both YoY and QoQ mainly driven by the early launch of Galaxy S7 and its strong sales and improved cost efficiency through the streamlining of mid-to-low-end smartphone lineups.
The news was different for Apple who saw a decline in its revenue in this same period compared to last year. The company posted a quarterly revenue of $50.6 billion and quarterly net income of $10.5 billion, as against last year’s revenue of $58 billion and net income of $13.6 billion.
The IM Division is expected to secure solid earnings by expanding sales of the Galaxy S7 along with strong profitability of mid-to-low-end products.
