While the Android and iOS duopoly doesn’t look like it’s going away anytime soon, the Samsung-Apple duopoly continues to erode. Apple’s quarterly profit came in at $7.8 billion, down from $10.7 billion in the same period of 2015.
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Looking to the future, Samsung is of the belief that while the demand for its smartphones and tablets will see a spike in H2 2016, the competition in the smartphone market will also heat up owing to several OEMs launching new mobile devices.
Samsung said sales of organic light-emitting diode display panels went up, helped by healthy sales of flagship smartphones and higher demand for flexible displays for the S7 Edge. Demand for chips and display panels are expected to be strong due to the launches of new smartphone models from Samsung and Apple.
Net income, excluding minority interests, was 5.83 trillion won (RM20.64 billion) in the period ended June, the Suwon, South Korea-based company said in a filing Thursday.
The release of the company’s “next big thing” might help, too.
Apple and other competitors were not likely to launch any ground-breaking products to undercut Samsung in the second half, IBK’s Kim said.
Profits will continue to increase in the second half, it said, backed by higher density NANDs and its “mature” 20-nanometer DRAMs. The key model for OPPO will be the R9, which right now is its top shipping model and the aggressive marketing around the device shows the company’s ambition in the high end of the market.
The company estimated that the stronger Korean won against major currencies in the second quarter negatively impacted operating profit by approximately KRW 0.3 trillion, reflected mainly in the component business earnings.
The mobile division’s network business saw its LTE business profit rise, and it expects to win more orders in the third quarter, the company said.
Samsung’s new flagship handsets shipped in March, which is considered by the industry to be the annual sweet spot for launching new hardware.
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It should be noted however that Apple remains a hugely profitable organisation, but analysts are concerned about future product rollout as Apple’s two straight quarter decline, contrasts starkly with its prior 13 years of quarterly revenue reports without a decline, dating back to 2003. He is based in Taiwan.
