In the recent years, troubling news has been dominating headlines at South Korea’s top tech company Samsung with respect to dwindling sales.
However, it seems things have taken a different path as the company announced its Q3 2015 earnings that suggest things are headed in the right direction.
According to the report, the company saw its revenues increase from $41.7 billion posted in Q3 2014 to $45.6 billion posted in the same period this year. During this period, the company reported that it had realized a significant amount of profit from its sales, rising by almost double from $3.6 billion in 2014 to $6.42 billion in 2015.
Samsung’s smartphone sales still picking up
Even though the company has posted some huge amounts of profits for Q3 2015, the large part of it came from the company’s display and chip business. There is still some good news for the company as far as the smartphone business is concerned, but this segment is yet to fully recover from the slump that it saw from early 2014 thanks to the boom in the sales of Apple’s iPhone.
During this year’s announcement, Samsung reported that the smartphone business saw an increase in profits from last year’s $1.54 billion to this year’s $2.1 billion thanks to the increased shipments of the newest members of the company’s phablet family, the Galaxy S6 Edge+ and Galaxy Note 5. The company also said that it is expecting increased sales as far as tablets are concerned, which is a common happening, given the fact that demand for tablets usually increases towards the fourth quarter of a year.
The statements put forward by Samsung indicate that the company is expecting much higher revenues and profits in this fourth quarter, especially with respect to handset sales. Apple has been running things in the smartphone world, but Samsung borrowed a leaf from Cupertino with respect to material design, something that seems to be working in favor of the Korean tech giant. On the other hand, Apple has also moved in with the phablet, featuring iPhone 6 Plus and iPhone 6S Plus, a smartphone segment that was pioneered by Samsung a few years ago. Apple’s dominance seems set to continue, which will make things even more interesting for the users of these products.
Samsung Pay to come to the rescue
Even though Samsung has reported some healthy sales and profit margins in Q3 2015, there are still issues the company has to deal with. In the wake of the unfavorable foreign exchange rates for the Korean won, Samsung expects reduced earnings in Q4 2015. However, the company has a plan in place and this plan is Samsung Pay.
Samsung Pay, just like Apple Pay and Android Pay, is a mobile payment system that has been designed by this tech giant. The company will be refocusing its efforts on pushing this service to the world as well as on wearables. The typical rise in the demand for tablets during Q4 of each year will also be leveraged by this Korean tech giant in ensuring that its profits are much better than those recorded in Q3 2015.
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