Recently, Samsung has been making big profits in the smartphone industry. Most of its success and profit can be credited to the new flagship devices the Samsung Galaxy S7 and Galaxy S7 Edge. The company has also been restructuring and the efforts have gained the company a lot of profits in the recent quarters. However, it appears that the profits are going to kick into high gear in this current trimester, according to forecasts.
Analysts are changing their Q2 2016 operating profit estimates for Samsung higher. It appears that the analysts have reached a consensus. The analysts claim that Samsung is about to announce no less than $6.8 billion profits earned from its operations. For comparison, in the third quarter of 2015 Samsung made $6.3 billion, then $5 billion in the fourth quarter of 2015. In the first quarter of 2016, the tech giant earned $5.84 billion in profits.
Granted, this profit margin is still quite far from the record $8.94 billion that was set in the third quarter of 2013, but it is still higher than both Q2 2014, and Q2 2015. A big share of this increase in profit is attributed to the stellar sales record of the latest Galaxy S7 and S7 edge. Moreover, if the rumors about the Galaxy Note 7 turn out to be credible, then we might see Samsung profits going strong in the third quarter of the year as well.
Such high profits were expected by the company considering that Samsung released special editions of the Galaxy S7, including the Galaxy S7 Edge Injustice Edition. The company is expected to unveil the Galaxy S7 Olympic Edition soon. The smartphone is a special edition handset created for the celebration of the Olympics Games which are going to be held in Rio de Janeiro in August this year. The Galaxy Note 7 is also expected to launch on August 2. The specifications for the smartphone have been leaking for awhile, revealing that it will surely be worth the wait.
According to another report, Samsung sold more smartphones than Apple in Q4 2015, so it will be interesting to see how its smartphone sales perform in Q3 and Q4 after the company releases the Note 7 and Apple unveils its latest flagship the iPhone 7.