For an organization that’s seen a good bit of turmoil over the past couple of years, Samsung reported comparatively sturdy earnings at this time, largely because of its surging chip enterprise. Fortunately for Samsung, that energy overcame a cellular handset enterprise that is still in transition.
With lower than a month to go earlier than Samsung unveils its new flagship telephones, the earnings numbers are a reminder of simply how a lot Samsung’s cellular enterprise has using on gross sales of the brand new Galaxy S9 and S9+, which aren’t anticipated to be radically totally different from final yr’s S8 and S8+.
In the corporate’s This fall earnings launch at this time, Samsung Electronics reported document outcomes for the third straight quarter. Given a disastrous recall of exploding Galaxy Notes in 2016 and a scandal that noticed Samsung’s chief sentenced to 5 years in jail final yr, that’s considerably outstanding. Samsung mentioned its income have been up 42 p.c from the earlier yr, and income rose 23.7 p.c.
However, whereas Samsung didn’t present particular numbers, the corporate famous that “whole smartphone shipments decreased, as a result of lineup optimization of low-end fashions, whereas shipments of flagship merchandise, such because the Galaxy Note 8, elevated from the earlier quarter.”
In different phrases, Samsung has historically been targeted on market share, promoting a variety of smartphones. But it’s been winnowing that lineup, significantly after a few tough years that noticed it blown out of markets like China by powerful native competitors.
Instead it’s (as soon as once more) attempting to observe Apple’s lead and focus extra on premium telephones with options that set them aside. Thus, elevated gross sales of the flagship S8 are excellent news, even when it’s not sufficient to offset the general drop in lower-end smartphones.
But if Samsung desires to lean tougher on its flagship telephones, the upcoming announcement of the Galaxy S9 and S9+ takes on higher significance.
In spite of leaks suggesting the S9 and S9+ will probably be pretty near their predecessors, Samsung is optimistic that the brand new telephones will increase earnings.
“In the primary quarter, the corporate expects the cellular enterprise to enhance its earnings, led by a rise in gross sales of flagship merchandise with the launch of Galaxy S9,” the corporate mentioned in its earnings report.
And it emphasised that going ahead, “Samsung will proceed its efforts to distinguish its smartphones by adopting cutting-edge applied sciences, equivalent to foldable OLED shows.”
Samsung additionally mentioned that demand for smartphones is predicted to rise this yr “because of rising substitute demand for premium smartphones.”
The firm definitely has its followers. We’ll quickly see if that loyalty will probably be sufficient to maneuver the brand new Galaxy telephones in enough numbers to spice up Samsung’s present smartphone technique.
This article sources info from VentureBeat