Samsung Previews Record Q1 Results Ahead Of Monumental Galaxy S8 Launch
Samsung has proven to be quite the worthy adversary to Apple in the mobile space. Despite hitting some bumps and potholes in the road over that past few years, including the seemingly disastrous Galaxy Note 7 debacle, Samsung is set to announce record earnings for the first quarter. It will also report a Q1 profit that is the highest is has been in three and a half years.
That is pretty remarkable considering what Samsung had to overcome. After killing off its fire-prone Galaxy Note 7 handset that went through not one, but TWO recalls last year, it would not have been surprising if consumer confidence in the company waned. But rather than kick sand and tuck its tail between its legs, Samsung picked itself up by the boostraps and even has plans of selling refurbished Galaxy Note 7 devices for a third time in certain territories.
Looking back even further, it was not that long ago when Samsung's mobile business was in complete disarray. Stuck with unsold Galaxy S5 devices, there were major questions about Samsung's ability to continue competing in the smartphone sector. Samsung answered those questions by shaking things up on the executive level and revamping its Galaxy phone line with a premium construction.
The credit for Samsung's recent success is not solely on its mobile division. Samsung has been able to make up for situations like the Galaxy Note 7 recall by selling mobile processors and memory chps. Its mobile chip business is booming thanks to continued high demand for smartphones, and it is seeing sales for its memory chips in the server market. On top of that, Samsung rakes in cash from its display division.
"Right now it's about as good as it gets for Samsung," Park Jung-hoon, fund manager at Samsung shareholder HDC Asset Management, told Reuters.
While Samsung is set to announce record revenue, its numbers for the second quarter could be even higher. That is because Q2 will include sales of the Galaxy S8 and Galaxy S8+, Samsung newest flagship smartphones. It is already accepting pre-orders for the new handsets, which will release on April 21.