Published in Mobiles

Guardian of the Galaxy makes killing

by on03 April 2015

Samsung laughing all the way to the bank

While Samsung saw its January-March earnings slip for the sixth straight quarter, investors are expecting a rebound this year on healthy chip sales and high hopes for its Galaxy smartphones.

Samsung shares are soaring on the news that the Galaxy S6 is the best thing that the outfit has made for years.
Investors believe the Galaxy S6 and its curved-edges variant will sell briskly when they roll out this month following positive reviews, and analysts say new mid-tier phones will boost sales, adding to expectations that the earnings slide in its handset business is ending.

But the Galaxy is not the only thing which is going well for Samsung. It invested big in chip making and that seems to have paid off. It is snaffling up mobile chip commissions like no-one's business and it is returning to profit.

Its Exynos processor will power the new Galaxy phones, and Samsung recently added Nvidia as a contract manufacturing client.

The recovery is expected to be gradual and well shy of record profits in 2013. The cocaine nose jobs of Wall Street think that the outfit will make a first-quarter operating profit of $4.82 billion, down 38 percent from last year but certainly not to be sneezed at.

Analysts say the underlying figures should show meaningful improvements, with momentum to pick up further once the Galaxy S6 and S6 edge roll out globally.

BNP Paribas analyst Peter Yu expects Samsung to ship 44 million of the new phones this year, compared with an estimated 38 million units of the disappointing Galaxy S5 last year.

The belief is that Samsung's smartphone operations are in a full recovery phase, and Samsung's time of woe is over.

Last modified on 03 April 2015
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