It’s that time of the year when companies are announcing their quarterly financial results left and right. We’re only interested in some of the top brands in the mobile industry today so after Google, we’re moving the spotlight on Samsung. The South Korean giant recently announced the second quarter financial results, showing us a three percent increase from the previous quarter. That may be a small percent but operating profit for Q2 was 6.9 Trillion KRW which is about $5.9 Billion. Total revenue reached 48 Trillion KRW ($41.28 Billion) from all of Samsung businesses.
Looking at the figures, we can say that quarter-on-quarter (QOQ) improvements were achieved mainly because of the Semiconductor Business that includes the mobile app processors and memory products. With the launch of the Galaxy S6 and S6 edge and the units utilizing the company’s very own Exynos processor, Samsung has greatly benefited from this development. Sales of the flagship pair may seem low but the smartphones are becoming more popular each day.
Marketing expenses increased but we have yet to know if such bump will add to the sales and improve the financial report for this quarter. Samsung has a number of other businesses where it could drive growth and more sales including the TV division, 14-nanometer semiconductor foundry, LCD panels, DRAM products, and IT & Mobile Communications (IM) division. However, we may not expect good numbers from the IM group unless Samsung makes an adjustment in the high prices of the Galaxy S6 and Galaxy S6 edge.
Here are some more highlights of the Q2 financial results:
• Device Solutions (DS) Division saw a 17.87 Trillion KRW in consolidated revenue which is about $15.36 Billion and 3.87 Trillion KRW ($3.3 Billion) operating profit
• Display Panel segment posted a 6.6 Trillion KRW in consolidated revenue ($5.7 Billion)
• LCD panels sold more because of the high demand in premium TV panels
• IM division saw a 26.6 Trillion KRW ($22.4 Billion) consolidated revenue while operating profit reached 2.76 Trillion KRW ($2.7 Billion) for the said quarter
Samsung may struggle this 2nd half of the year but with the impending arrival of the Galaxy Note 5 and the Galaxy S6 Plus, the company may see some noticeable improvements in number. Changing the S6 and S6 edge pricing may also do them good but the tech giant must need to review marketing expenses so products will become more profitable.