large image

Trusted Reviews is supported by its audience. If you purchase through links on our site, we may earn a commission. Learn more.

Samsung’s profits down but Galaxy S6 effect still to come

Samsung has announced its Q1 profits, and while it’s still down overall, the company has considerable reason for optimism.

The Korean company earned an operating profit of 6 trillion won (around £4 billion) for the period spanning January to March. That marks a sizeable increase from last quarter’s figure of 5.3 trillion won.

Compare Samsung’s figures to the same period last year, however, and the picture isn’t so rosy. In fact, it marks a drop in operating profit of some 39 percent.

Clearly Samsung’s mobile business in particular is coming under increased competitive pressure from Apple at the top and several Chinese companies at the bottom. As TechCrunch points out, the division’s operating profits dropped 57 percent year on year to 2.74 trillion won (£1.7 billion).

However, Samsung has at least been able to recapture the top spot as far as mobile shipments go, according to Strategy Analytics.

What’s more, Samsung has two major aces up its sleeve for the next quarter and beyond. The Samsung Galaxy S6 and Samsung Galaxy S6 Edge launched in April, which means its shipments will start counting from the next period – and business should be good. Samsung expects to sell 23 million of each high-end handset this year.

Read More: Galaxy S6 vs iPhone 6

While Samsung’s mobile sales have been underwhelming, its semiconductor business continues to do well. It made an operating profit of 2.93 trillion won (around £1.8 billion) from the division in Q1, which is up from 1.95 trillion won (£1.2 billion) during the same period last year.

The company’s display division is doing quite well, too, with a 520 billion won (£316 million) profit dwarfing last year’s 80 billion won (£49 million) thanks to an increase of interest inn UHD TVs.

Why trust our journalism?

Founded in 2003, Trusted Reviews exists to give our readers thorough, unbiased and independent advice on what to buy.

Today, we have millions of users a month from around the world, and assess more than 1,000 products a year.

author icon

Editorial independence

Editorial independence means being able to give an unbiased verdict about a product or company, with the avoidance of conflicts of interest. To ensure this is possible, every member of the editorial staff follows a clear code of conduct.

author icon

Professional conduct

We also expect our journalists to follow clear ethical standards in their work. Our staff members must strive for honesty and accuracy in everything they do. We follow the IPSO Editors’ code of practice to underpin these standards.