Samsung in Q1 in Earnings Surprise

      March 30, 2016 12:57

      Samsung Electronics achieved an estimated operating profit of more than W6 trillion in the first quarter, well above the projected W5 trillion (US$1=W1,166). That would be the fourth quarter in a row that Samsung has posted an operating profit in the W6 trillion range.

      The main reasons for the earnings surprise is strong sales of the Galaxy S7 smartphone compounded by an advantageous exchange rate.

      The Galaxy S7, which Samsung unveiled on March 11, is selling over 2.5 times better than the S6.

      But sales of Samsung's bread-and-butter semiconductors also surpassed those of rivals in spite of declining prices, thanks to demand for premium products like 3D NAND chips and system semiconductors.

      The won's weakness since the beginning of this year has also led to hundreds of billions in added profits for Samsung.

      Consumer electronics are also faring well thanks to demand for premium products like SUHD TVs, ahead of the Euro 2016 football matches in June.

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