• Samsung Ends Two Year Profit Decline Due to Chip Orders, Not Smartphone Sales

    Samsung Electronics reported on Wednesday that they grew approximately 79.8% in profits year-over-year, which ends the company’s almost wo-year decline in profit. It is believed that the increase was most likely due to chip sales, as opposed to electronic sales. According to The Wall Street Journal, the Korean-based company’s year-over-year profit was 7.3 trillion Won (approximately $6.3 billion USD). Samsung’s revenue is said to have increased by 7.5% to 51 trillion Won (approximately $44.26 billion USD).

    The Wall Street Journal was told by analysts that the increase in profit was likely due to the company’s chip supply, as well as display sales to Chinese smartphone makers. Samsung’s chip division was said to be responsible for half of their profits. As for the company’s mobile division, it was said that sales were better than last year due to the launch of their two high-end devices; Galaxy S6 Edge+ and Galaxy Note 5.

    Samsung this year, moved their launch date up so that it would be released before Apple’s iPhone 6s and 6s Plus. Last year, the Korean-based company made the mistake of releasing their smartphones after the iPhone 6 and 6 Plus, which caused their smartphone division to take a huge hit. Apple currently has two A9 chip manufacturers and Samsung is one of them. It has been rumored that they might also be responsible for the A9X processor for the upcoming iPad Pro.

    Although Apple might be stealing a lot of customers away from Samsung in the mobile division, they definitely are making it up by providing them chip orders for the Apple products.

    Source: The Wall Street Journal
    This article was originally published in forum thread: Samsung Ends Two Year Profit Decline Due to Chip Sales, Not Smartphone Sales started by Akshay Masand View original post
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