Components drive record Samsung profits as mobile sales slide

Samsung Electronics has reported Q1 earnings in line with its guidance: as predicted, the company made an operating profit of 9.9 trillion won (about $ 8.7 billion), its second biggest quarter ever and its highest ever figure for the January to March period. Revenue was 50.55 trillion won, or about $ 44.7 billion.

Samsung says that the record-breaking profit was down to strong sales in its components businesses: mostly displays and memory. Although the Galaxy S8 wasn’t released in this three-month period, Samsung’s unit that develops processors and image sensors also improved its earnings, likely because of ramping up production in anticipation of the latest flagship launch.

But Samsung’s key mobile business saw revenue slide due to a decline in flagship product sales. That’s not altogether surprising considering the demise of the Galaxy Note 7, and it’s natural that demand would be lower for the Galaxy S7 range right before the launch of the S8. Samsung also lowered the price of the S7, further contributing to the decrease in revenue.

Samsung confirmed that a new flagship phone will be coming in the second half of the year, though it’s unclear whether it’ll adopt the tainted Note brand. If nothing else, the mobile business shouldn’t have much trouble posting better numbers this time next year.

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Post Author: martin

Martin is an enthusiastic programmer, a webdeveloper and a young entrepreneur. He is intereted into computers for a long time. In the age of 10 he has programmed his first website and since then he has been working on web technologies until now. He is the Founder and Editor-in-Chief of BriefNews.eu and PCHealthBoost.info Online Magazines. His colleagues appreciate him as a passionate workhorse, a fan of new technologies, an eternal optimist and a dreamer, but especially the soul of the team for whom he can do anything in the world.

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