Samsung On A Roll As Galaxy S7 Delivers Big Growth
Now it’s Samsung teaching Apple a lesson after the Korean Company reported a 17% increase in revenue due in part to the success of their Galaxy 7 smartphone.
While Apple struggles to hold onto iPhone sales Samsung is steaming ahead proving that there is still plenty of money to be made from selling handsets that stand out from the pack.
On Thursday, Samsung said it estimated it earned 8.1 trillion Korean won ($7 billion) in the three months ended in June, which would be a 17% increase from a year earlier and the biggest quarterly operating profit the technology giant has recorded since early 2014, during the glory days for smartphone makers.
Apple is tipped to respond by making their next iPhone 7 US$100 less expensive.
According to sources the iPhone 7 and iPhone 7 Plus will scrap the 16GB entry level tier in favour of a 32GB model.
The Samsung results are in contrast to those of Apple who are struggling to hold onto market share in Asia, in particular China.
The WSJ said that while Samsung won’t break out the details of its second-quarter earnings until the end of the month, analysts have attributed the strong operating profit to the success of the Galaxy S7, which the tech giant introduced in early March to favourable reviews.
Unlike its two predecessors, the flagship Galaxy S7 combined a sleek curved-edged look that sets it apart from the iPhone, with practical features that consumers have long clamoured for, including water resistance and expandable memory. Those features are missing from the latest iPhone, though Apple’s homemade iOS operating system gives it a unique selling point compared to Samsung and other Android phone makers.
Analysts estimate that Samsung shipped as many as 17 million Galaxy S7 smartphones in the second quarter, after moving about 10 million units in the last three weeks of the first quarter.
That puts the Galaxy S7 on a sale pace that is nearly twice as fast as that of last year’s Galaxy S6, which analysts estimate took about six months to hit 27 million unit shipments. The rollout of the Galaxy S6, a product that received upbeat reviews, was marred by supply constraints that hampered Samsung’s ability to profit off a potential hit product.