After a couple years in which the world’s leading smartphone manufacturer struggled to achieve forward momentum, Samsung is seeing several decisions come together to yield a financial turnaround for the company. The new path forward is being blazed by the release of the Samsung Galaxy S7 and Galaxy S7 Edge, which are outperforming expectations. These positive results led several investment analysts and brokerage firms to upgrade their forecasts for the first quarter.
According to analysts like Jay Yoo with Korea Investment & Securities, Samsung is thought to have shipped around 9.5 million Galaxy S7 phones during the first quarter. This is much better than the initial estimates of around 7 million units expected to ship. The surprising results come amidst a general slowdown in the smartphone market and suggest Samsung may be in a good position moving forward.
Analysts have cited factors like the timing of the release of the new Galaxy S7 devices, which Samsung moved up a month compared to last year’s Galaxy S6 launch. This is giving the company an extra bit of time to be in front of consumers without any major competition from other competing products. Others have noted that the Galaxy S7 may not differ greatly from the Galaxy S6 in terms of design and build, but that also helped keep the costs or production and development down, meaning Samsung could drop the starting price.
The impact of this positive news has helped to buoy the stock price which jumped to an 18-week high last week. Since mid-January, Samsung stock is up over 20 percent after a 22 percent drop-off the preceding three months. This is also good news for Jay Y. Lee, Vice Chairman, who hopes to show he has the ability to lead the massive Samsung conglomerate of businesses.