Samsung chuckles, swerves around Apple's Q1 phone sales crash
S7 propels chaebol
Samsung delivered what Apple couldn’t in the first three months of 2016 - increased smart phone sales.
The chaebol today reported overall group net profit of 5.25 trillion won ($4.5bn), up 5.6 per cent for calendar Q1 on sales that grew 5.6 per cent to 49.7 trillion won ($43bn).
The giant’s mobile unit reported eight per cent growth to 26.94 trillion won ($23bn).
Apple, Sammy's number-two competitor, this week reported declining smart phone sales, a development that helped pull down the firm’s corporate results.
Overall, the Samsung unit that houses mobile saw it’s sales up seven per cent to 27.60 trillion won ($24bn).
It was the Galaxy S7 that propelled business, with Samsung attributing strong sales to “enhanced practical features as well as early introduction.” Samsung launched the S7 in February.
The giant, which bet its smartphone stack on Android, warned, though, not to expect stellar things from smartphones: demand for smartphones will slow year on year, Samsung said, while tablet demand will decline year on year for 2016, concurring with analysts' forecasts.
Sales of semiconductors rose nine per cent to 11.15 trillion won ($9.6bn) with an operating profit of 2.63 trillion won ($2.2bn) but memory sales fell five per cent to 7.94 trillion won ($6.9bn). ®