In its earnings preview, the South Korean company put its operating income at KRW 8.1 trillion ($7 billion or roughly Rs. 47,200 crores), compared with KRW 6.9 trillion a year earlier.
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Samsung Electronics’ operating profit had reached as high as 10.16 trillion won (US$8.83 billion) in the third quarter of 2013. Samsung relies heavily on its IM division for profits.
According to US-based market research company IC Insights, buoyed by the strong sales growth of Galaxy S7 and S7 Edge, Samsung sold 81.5 million smartphones, followed by Apple with 51.6 million smartphones – in the first quarter. Operating profit at the consumer electronics division, which encompasses TVs and appliances, probably more than tripled to 770bn won, according to the analyst survey. One thing that Samsung’s quarterly sales figures is that it bumped the launch of its Galaxy S7 series in early March rather than waiting until late April like it usually does.
The internal Samsung memo also highlights that the Galaxy Note 7 will sport a borderless display, which may hint at the “edge” version of the phone with no borders.
Samsung’s distinctive curved screen displays are likely to become a lot more common in the industry, as Samsung’s components business gains traction selling organic light-emitting diode, or OLED, display panels, to outside customers like Apple and other Android handset makers.
Keep in mind that these are just projections on Samsung’s part and that full earnings will be released later this month. Joyent competes with Amazon Web Services, Google and Microsoft’s Azure platforms and could bolster Samsung’s smartphone offerings against Apple’s rival iCloud service.
Brokerage houses were not optimistic about Samsung’s second quarter at the beginning.
Samsung shares were up 1.83% in trading in South Korea on Thursday following the release of the company’s estimates for its second quarter sales and earnings.
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Samsung posted a solid 6.7 trillion KRW profit on revenue of 49.8 trillion KRW in the previous quarter thanks to encouraging sales of its flagship Galaxy S7 and S7 Edge smartphones.
