Anyone who thought that Samsung is losing ground to its competitors needs to check their facts again because they have apparently done very well in Q1 2016, as made evident by a 10.4% growth in profit. The impressive figure of $43.3 billion or ₩49 trillion in terms of first quarter sales is a significant increase over 2015's quarter one sales which was $40.7 billion or ₩47.1 trillion.
The profit made from these sales so far in 2016 is even more impressive as the $5.7 billion (₩6.6 trillion) figure shows an increase of 10.45% from last year. Although it is not mentioned anywhere specifically, one can pretty much guess that the incredibly well received Samsung Galaxy S7 and S7 Edge played a very big role here. It was to be expected once you consider that Samsung has shipped over 10 million Galaxy S7s in the month of March alone!
If these numbers are any indication of what's to come then this is going to be a very big year for the South Korean Electronics giant. We do think that the Galaxy S7 is a fantastic smartphone and the sales figure is probably well deserved.
Having 100% of the market profits is what every company dreams of but even in their happiest dreams, it may seem quite inconceivable that a single company will scoop up more than one hundred percent of the entire operating profit in the business! Nevertheless, that's exactly what Apple has achieved in Q3 2016 as it has managed to net 103.6% of the entire sum of operating profits in the smartphone business globally.
Although it may seem like a mathematical impossibility at first, things become a bit clearer once you consider the actual situation. The number went up above the 100% mark because of the fact that Apple has even managed to net in the money that other manufacturers have lost during the quarter. The likes of HTC and LG has suffered significant losses during the quarter and although Samsung did manage to stay at the number 2 position with a comparatively sad profit of about 0.9%, we now know where most of the money that they lost during the Note 7 debacle went to!
BMO Capital Markets reported the entire scenario, along with also mentioning that Samsung still is the global king of smartphones with a market share of 21.7%, followed by Apple at about half of that (13.2%). Personally, I cannot help but notice that this awe-inspiring percentage also has a lot to do with the tremendous profit margin which Apple has on each of its products.
Saikat Kar (tech-enthusiast)
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