Samsung Expects Strong First Quarter Profits

Samsung Expects Strong First Quarter Profits

In its preliminary earnings guidance on Thursday, Samsung said it expects revenue of 49 trillion won and operating profit of 6.6 trillion won in the first quarter of this year. That surpasses the market expectations.

The strong figure are most probably result of a more-than-expected sales of the company's Galaxy S7 and S7 Edge. The South Korea based company's semiconductor business also showed solid performance in spite of drop in chip prices. Last month many of the broking houses upgraded the sales expectation for the flagship phones. Even the Korean analysts who had earlier reflected tepid response for the new phones also upgraded their estimates later.

Samsung in recent years has faced tough competition from Chinese rivals who offer the low- to mid-end phones at a lower range. That hurt Samsung's profitability. In the earlier quarter, the Seoul based company posted its lowest net profit in the last four years.

For Samsung, U. S is the biggest market and next comes China, where the company lost out to local rivals. DJ Koh, in charge of the company's mobile research and development said expected a return to its form in the current year.