Tuesday, April 7, 2015

Samsung hopes Galaxy – Gazette

On Tuesday, the South Korean company Samsung Electronics has published the preliminary results of the next quarter, which show that the incipient reduction of its earlier gains slowed.

It is expected that the operating profit of Samsung in the first three months of the year be 5.9 trillion won ($ 5.4 billion). This is 30.5% less than the same period of 2014. In the last quarter of 2014 decline in profits compared to 2013 was 36%, compared with the previous quarter – 60%. Samsung’s revenue in the I quarter will be about 47 trillion won, up 12% from a year earlier. According to the forecasts of eight analysts surveyed by Dow Jones, lower profits in the quarter just ended was 35%.

Most experts believe that Samsung profitability may improve after the start of sales of the new flagship model of the smartphone Galaxy S6 and its variants with unusual edges are bent, Galaxy S6 Edge. Experts expect that these trends will benefit from higher demand than previous models of smartphones Galaxy, Samsung Electronics and help increase its market share and profitability.

According to Lee Synvo, an analyst at IBK Securities, cumulative sales of two new versions of Galaxy S6 to the end of the year reached 57 million pcs., Whereas the older model, Galaxy S5, sales amounted to only 38 million units. Lee also notes that the favorable dynamics Samsung profit in I quarter largely due to the success of Microprocessor Business Unit, which develops more stable than the cellular telephone unit.

Seeing that the demand for smart phones Galaxy line is low, the Korean company plans to improve the situation, equipping many are preparing to release a model metal housing. Galaxy traditionally produced mainly in plastic cases – it allows you to make the device easier, but many consumer plastic synonymous with cheap products.

margin units Samsung phones at one time was kept at about 20%, but in 2014 it fell below 10% due to increased competition from Apple, as well as the Chinese and Indian manufacturers. Samsung executives believe that after a relatively unsuccessful last year, the company is ready to start and win back lost ground in the near future it will exceed 10% margin.

The authors review a number of positive assessment Galaxy S6 market on the eve of the opening devices, and it affected the mood of investors. Shares of Samsung, lost in the price of the last two years, since the beginning of 2015 grew by 11%.

WSJ, 7.04.2015, Alexander Silonov

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