Things are starting to look up for Samsung after launching its Galaxy S6 and Galaxy S6 Edge smartphones to much fanfare. Ditching the plastic chassis that had been a staple of prior Galaxy phones and switching to a premium metal and glass design proved popular, both in terms of pre-order numbers and projected sales. And just like that, the gloom and doom talk has dissipated.
According to Reuters, investors are confident that Samsung's new flagship handsets will see strong sales throughout the year. Putting their money where their mouths are at, shares of Samsung have skyrocketed to the highest they've been in more than 21 months. That includes an 8.6 percent rise in the January to March period, which followed a 12.1 percent jump in previous quarter.
The show of confidence is just what Samsung needed, as it wasn't that long ago when the company was staring at excess inventory of unsold Galaxy S5 devices. With things moving in the wrong direction, Samsung just three months ago fired three high-level executives as part of a restructuring effort. However, mobile boss J.K. Shin was spared a pink slip because of his prior success, and that decision turned out to be a wise one, as his business savvy is once again paying off for the company.
It's not just an uptick in phone sales that has investors excited in Samsung all over again, either. Strong semiconductor sales and ongoing memory chip demand are positive indicators as well. Samsung predicts its system chip business will return to being profitable this year; especially as its Exynos SoCs make their way into more devices.