Samsung to experience 78% profit growth year-over-year in Q3 2015
Samsung has put out their early unaudited earnings report for the third quarter of 2015, and there’s some good news to go around for the South Korean company — their profits didn’t decline! Samsung has never had an issue posting a profit each quarter, but it’s been a long time since the arrow pointed upwards.
The company is predicting about $6.27 billion in profit on $43.8 billion in revenue. This is the first time in nearly 2 years the company’s profits have risen, and this also marks a 78% year-on-year improvement.
Samsung didn’t have much in the way of commentary for way their numbers have improved, but one might suggest their improved sales strategy for flagship devices could have moved the needle. Samsung admitted to misjudging market demand for the Samsung Galaxy S6 and S6 Edge earlier in the year, so much so that they had to adjust pricing shortly after launch.
That misstep prompted them to make an interesting move by offering not one, but two phablets for their second-half launches. And for one reason or another, the company decided to tread carefully in the European market by only offering the Samsung Galaxy S6 Edge+ and opting to hold the Note 5 back. The move seemed strange — it still does, actually — but it can’t have been misguided much considering their earnings didn’t tank.
Samsung also sought to accelerate their launch plans for the Samsung Galaxy Note 5 and S6 Edge+ to beat Apple to market, so that extended period of alone time on store shelves could have also improved sales.
We’ll have to wait for Samsung’s full earnings report later in the month to get a clear idea of what helped them return to profit growth, but let us know what you think in the meantime.
[via Samsung]