In the week before the launch of the Samsung Galaxy Note 7 tablet, the South Korean company has announced its Q2 2016 earnings report. Crucially, year on year revenue was up five percent, profit up eighteen percent, and that turnaround has been driven by strong sales of the Galaxy S7 family of devices (primarily the Galaxy S7 and the S7 Edge).
That’s great news for Samsung’s investors and for the health of Samsung’s smartphone ecosystem. Not only does it continue the trend of recovery that started with DJ Koh taking over the mobile division, it also sets up the launch of the Note 7. Consumers love buying into a winning brand, and this year has brought Samsung back to the podium after the misfiring release of the Galaxy S5 and S6 ranges.
A mix of solid hardware development, aggressive timing to challenge the competition, and strong marketing to consumers has seen sales of Samsung’s smartphones lift up the company. Looking forward to the next quarter, Samsung expects to sell even more devices, specifically the retail debut of Note 7 phablet. The internal challenge for Samsung will be to maintain that momentum into Q4 and the festive market with models that have been on sale for some time.
Samsung is also aware of the external challenge: “Demand for smartphones and tablets in the second half is forecast to increase, however, market competition is expected to strengthen as other companies release new mobile devices.”
While there are many devices expected over the next month at homegrown press days or major events such as IFA in Berlin, the unmentioned company that figures in the statement is Apple. The stiffest challenge to the Galaxy S7, S7 Edge, and Galaxy Note 7 will be the presumptively titled iPhone 7 family of devices. Apple is expected to reveal the handsets in early September.
The catch is that, unlike previous years, Apple does not have as strong a story to tell as Samsung. With iPhone handset sales down for the second quarter in a row and a lack of new technology expected on Tim Cook’s smartphones, the way is clear for Samsung to push itself as the innovator, the consumer’s champion, and the successful smartphone platform of 2016.
Now watch Forbes’ ninety-second review of the Galaxy S7 Edge:
Source: http://www.forbes.com/,youtube
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