Samsung had an excellent first quarter of 2016 off the back of far better-than-expected Galaxy S7 and Galaxy S7 EDGE flagship sales, surprising many analysts and prompting a mad dash to recalculate forecasts for the rest of the year and beyond. The boost meant the Korean phone-maker had managed to pull itself out of a two-year slump in flagship performance during the same quarter that saw Apple performance decline for the first time in as long as anyone can remember!
Perhaps less surprisingly, Q2 has only seen Samsung's fortunes improve. Samsung is rumoured to be preparing a public statement for announcement sometime this week, where it is expected to reveal a big increase in operating earnings for the quarter. In addition, a Reuters report claims the reveal will showcase the firm's best quarter performance in a two year span, well and truly confirming that the slump has ended. The report cites a survey of 16 industry analytsts who predict a 13% increase for Samsung's Q2 operating earnings figures year-on-year, rising to $6.8 billion (oddly the same figure the firm is reportedly pouring into its OLED production facilities!). For the record, Samsung hasn't reported an earnings figure that high since 2014's Q1 $7.4 billion. Allegedly Samsung's mobile arm account for as much as 54% of the 2016 Q2 figure - around $3.7 billion - this is off the back of an estimated 16 million Galaxy S7 and Galaxy S7 EDGE handsets shipped for the quarter. Analysts to expect profit margins to decline as the two flagship models become old news (and likely as more rumours emerge of 2017's Galaxy X, Galaxy S8 and Galaxy S8 EDGE set to appear in Q1). However, the Galaxy Note 7 (and possibly Galaxy S7 EDGE+) will arrive in early August and may well give things a booster shot.