We need your help now

Support from readers like you keeps The Journal open.

You are visiting us because we have something you value. Independent, unbiased news that tells the truth. Advertising revenue goes some way to support our mission, but this year it has not been enough.

If you've seen value in our reporting, please contribute what you can, so we can continue to produce accurate and meaningful journalism. For everyone who needs it.

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

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.

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 Laura Lean / PA Wire Laura Lean / PA Wire / 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 >

Your Voice
Readers Comments
    Submit a report
    Please help us understand how this comment violates our community guidelines.
    Thank you for the feedback
    Your feedback has been sent to our team for review.