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Samsung reported its best earning results in two years on Thursday as the company's Galaxy S7 phones outperformed all expectations, despite slowing growth in the overall smartphone industry (via The New York Times).

The South Korean company announced a 8.14 trillion won ($7.22 billion) operating profit on revenue of 50.94 trillion won ($45.2 billion), up 18 percent from the previous year.

samsung_logo.jpg

The firm's key mobile division, which accounts for more than half its revenue, experienced "substantial earnings improvement" as its high-end Galaxy S7 and S7 Edge phones enjoyed expanded sales, despite competition from Apple's iPhones and by lower-end devices from Chinese rivals like Xiaomi and Huawei.

Samsung forecast "solid" performance for the rest of the year despite increased competition as "other companies release new mobile devices", thanks to strong demand for its components, such as OLED displays, which the company expected to increase "substantially".

The company is also betting on an uptick in revenue generated by next week's unveiling of its Galaxy "Note 7" smartphone, which is thought to feature an edge-to-edge curved screen, an iris scanner, and potentially a USB Type-C port.

Samsung Galaxy Note7 in (from l to r) Black Onyx, Silver Titanium, and Blue Coral pic.twitter.com/QiePUEG9GP - Evan Blass (@evleaks) July 1, 2016

The good news for Samsung came two days after its arch-rival Apple revealed its second consecutive year-on-year declines in quarterly revenue and iPhone sales, although the reported dips were smaller than analysts predicted.

In stark contrast to the marked popularity of Samsung's high-end devices, Apple's lower-cost iPhone SE was the bright spot in the Cupertino company's earnings call, gaining more traction than expected and going some way to soothe investor's concerns over growth.

Prior to the earnings call, Apple stock had lost more than a fifth of their value over the year amid mounting concerns about the slowdown. Despite worries, Apple's shares jumped as much as 7.5 percent on news of its Q3 results, as investors remained optimistic in the run-up to the company's iPhone 7 launch this September.

According to a recent report by Kantar Worldpanel, Samsung's Galaxy S7 devices accounted for 16 percent of mobile purchases made by U.S. customers this year, while only 14.6 percent opted for an iPhone 6S or iPhone 6S Plus.

Growth in the smartphone industry will slow to 3.1 percent this year, down from 11 percent last year and 28 percent in 2014, according to researcher IDC.

Article Link: Samsung Reports Highest Profit in Two Years on Robust Galaxy S7 Sales
 

keysofanxiety

macrumors G3
Nov 23, 2011
9,539
25,302
Then Tim cook should learn some sense from Samsung

And yet when Apple announce their best earnings reports, people here complain about the profit margins and say that earnings shouldn't be important. They also take the time to mention that iPhones make up too much of Apple's business and Apple are doomed as a result.

It's getting a little stale. What 'sense' do you exactly want TC to learn?
 

CEmajr

macrumors 601
Dec 18, 2012
4,447
1,224
Charlotte, NC
It's easier to have "improvement" when you're coming off several consecutive quarters of decline like Samsung. It wasn't long ago that they were panicking and firing executives because sales had dropped so much.

Whereas Apple's "decline" is 6s sales being compared to the insane sales posted by the iPhone 6 last year and it's big screen effect.
 

jayducharme

macrumors 601
Jun 22, 2006
4,513
5,925
The thick of it
And yet when Apple announce their best earnings reports, people here complain about the profit margins
That's where Apple has always excelled. Their profit margins are some of the highest in the industry. Notice that Samsung is saying that its bright spot for earnings is selling components to other manufacturers. Sure, Samsung sold a lot of Galaxies, but they weren't hugely profitable.

And BTW, I wonder who the big buyer of OLEDs is going to be...
 
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joueboy

macrumors 68000
Jul 3, 2008
1,576
1,545
I guess those people bashing about iPhone having no replaceable battery are actually buying these phones now.
 

x-evil-x

macrumors 603
Jul 13, 2008
5,576
3,234
i don't understand how to come to these figures since the iPhone comes out in september so its been around for 11 months about and the Samsung phones are a few months old. So how do they calculate the same time frame for phones and sales?
 

cdmoore74

macrumors 68020
Jun 24, 2010
2,413
711
I have both a iPhone 6S and Samsung S7 and to tell you the truth I keep coming back to the iPhone only because Safari is the better browser and I like Spark email manager over gmail. And the slightly smaller size, faster performance and brighter (or I should say crispier) screen keeps me coming back.
But then when I use my S7 again I start missing it because Android allows you to customize and there are way more features to keep you from being bored. So far there hasn't been any major updates but I know Android N is coming and with Samsungs track record we won't see it till 2017.
With that all being said I think I'm going Nexus this year. I can't see myself buying another iPhone with a similar design. I could care less that it's losing the headphone jack but I have to draw the line at another S model.
 
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vooke

macrumors 6502
Jul 14, 2014
270
230
Even the radicalized Apple fanboy should cheer competition because it means more sensible prices for their toys not to mention accelerated improvements.

My wife uses a Samsung Galaxy Note 4, I passed over Note 5 because of the missing MicroSD card, I can't wait to get her Note 6 or whatever they'll call it.

I use a simple Lumia 435 phone because I'm addicted to my iPad Air's screen size. Everything smaller irritates me. Planning to move up to Air 2 if only because I need 'change' else my Air is perfect for my current needs
 
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