TheJournal.ie uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Click here to find out more »
Dublin: 4 °C Friday 15 December, 2017
Advertisement

Samsung is beginning to recover, but it needs the S6 to be a success

The company expects to beat original estimates this quarter, but it’s hoping the S6 and S6 Edge will help reverse falling profits later this year.

The Samsung Galaxy S6 (right) and S6 Edge  which will be released on 19th April.
The Samsung Galaxy S6 (right) and S6 Edge which will be released on 19th April.
Image: AP Photo/Manu Fernandez

SAMSUNG IS HOPING the start of 2015 will mark the beginning of a long-awaited recovery as its slide in profits slows down.

Samsung released its earnings guidance for the first quarter of 2015 and while it’s positive – the company expects its profits to be the highest in three quarters – the company will still hope its upcoming smartphones will help drive recovery and boost profits.

Operating profit is expected to reach 5.9 trillion Korean won (€4.9 billion) while sales are expected to be 47 trillion Korean won (€39.7 billion). However, its operating profit was a decline of 30.5% from the same period a year earlier, a figure that has slowed down compared to 37.4% year-on-year in Q4 2014, and 60% in Q3 2014.

The news will come as a boost to Samsung as it prepares to launch its long-awaited smartphones, the Galaxy S6 and the S6 Edge, this Friday (19th April).

It also comes after a turbulent year for the company as it coped with a competitive smartphone market. A drop in smartphone sales and increased marketing costs hurt the company, but its profits were cushioned by its sales of memory chips.

It reported its smallest quarterly profit in nearly three years in Q3 2014 while Q4 2014 saw an improvement in performance despite operating profit continuing to fall.

Samsung Galaxy S6 phones unveiled Source: Laura Lean/PA Wire

The company has been trying to revitalise its smartphone range because of this. The most noticeable change was switching from a plastic design to metal as well as reducing the number of devices it releases over the year.

On the other hand, the company has been moving into other areas like VR, thanks to its partnership with Oculus Rift, and it’s preparing the final touches for Samsung Pay which will launch in the US later this year.

It has reportedly struck a deal with Apple to help produce A9 chips for the next generation of iPhones and other devices. The company already makes memory and processor chips for Apple and other mobile device makers.

Samsung will release the official report for Q1 2015 at the end of the month.

Read: The Irish Hailo is looking to make its presence felt in the UK >

Read: Ryanair pulled off an ‘exceptional’ March >

  • Share on Facebook
  • Email this article
  •  

Read next:

COMMENTS (32)

This is YOUR comments community. Stay civil, stay constructive, stay on topic. Please familiarise yourself with our comments policy here before taking part.
write a comment

Leave a commentcancel

Trending Tags