April 7, according to Bloomberg, the Korean tech giant Samsung Electronics today announced performance report, a preliminary verification of the company 2016 first quarter operating profit chain up 7.49%, an increase of 10.37%, 6.6 trillion won (about RMB 37.1 billion yuan).
Samsung Electronics in the first quarter operating profit better than expected, Bloomberg had a comprehensive analysts on average expected to be in the South Korean won.
Bloomberg analysts believe that the first quarter of this year, Samsung's operating profit exceeded expectations mainly due to its recent advance in advance of the launch of the flagship smartphone S7 Galaxy. The release of the product makes the company in the competition with apple and Chinese rivals in the first opportunity to help resist the downward trend in the industry.
Samsung Electronics in March this year, the first launch of S7 Galaxy, compared with last year's S6 Galaxy about a month's time in advance. It is reported that S7 Galaxy sales in its first month reached 9 million, three times the same period for the S6 Galaxy.
In addition, the Edge version of the Samsung Electronics curved screen production smoothly, to avoid last year due to the production of products not to keep up with the market demand embarrassment.
According to Yonhap analysts said that January to early March, won against the U.S. dollar exchange rate remained at 1 US dollar 1200 won more than, relative to the dollar strong, the export of finished products and accessories of Samsung Electronics rebound performance have a positive impact.
Boost share price
As of 9:02 a.m. local time, Samsung Electronics shares rose 0.6% to 1293000 won, so that the company's stock price rose 2.6% this year, up to. Samsung Electronics shares in 2015 is the third consecutive year of decline.
Samsung Electronics, said the first quarter revenue of 49 trillion won, higher than analysts expect the Korean won. The company will not be released until later this month as well as the performance of the Department's performance.
Most of Samsung's revenue from mobile phones, but the rise of HUAWEI, millet and other manufacturers make the market competition intensified. According to market research firm Gartner data, in 2016 the global smart phone sales will be the first digit growth.
According to the median estimate of six analysts surveyed by Peng Bo news, Samsung's mobile sector in the first quarter operating profit may grow by 19%, to the South Korean won. Welcomed by the market S7 Galaxy and re adjusted Galaxy series of cheap mobile phone products are boosting the performance of the department.
At present, Samsung Electronics continues to reduce the number of mobile phone products, so as to reduce the cost of focusing on a number of competitive devices. Bloomberg estimates, Samsung's first quarter smartphone shipments to 78 million, while the company's shipments in the holiday shopping season for the 82 million.
According to analysts expect Samsung Electronics first quarter operating profit may decline in the first quarter of 15%, to the South Korean won, its revenue was. S7 Galaxy launch for Samsung electronics semiconductor sector profit margins are minimal, because this product is almost no big action on the chip upgrade.
Since the beginning of 2014, the semiconductor sector has been the main driving force of Samsung's electronic profits. At that time, in order to offset the negative impact of the decline in sales of smart phones and TV products, Samsung Electronics began to focus on the chip and display products. However, due to the continued decline in prices, the Department's performance may be beyond the mobile sector again.
In order to improve the profit margins, Samsung Electronics began in February this year, the production of more advanced DRAM chip products. This new technology will reduce the width of the circuit, thereby reducing the size of the chip, to be able to produce more products from the unit wafer, thereby enhancing the profits.
Analysts expect the Samsung Electronics high-end smart phones and Chinese customers to produce OLED products display screen sector may be operating loss of 160 billion won. Although Samsung Electronics to more advanced LCD production technology development faster than expected, but this change or to the company's display sector performance damage.
In the long run, Taiwan's Hon Hai Group acquired the Sharp Co of Japan may impact on Samsung's display business. Although Samsung Electronics is in the lead in the field of display, but the acquisition of SHARP may exacerbate the competition in this industry.
However, the decline in the price of the panel may boost sales of TV products. According to analysts expect the first quarter operating profit of Samsung electronics consumer electronics products, including television and household appliances may grow to 385 billion won.