Samsung Electronics reported an increase in first-quarter results, led by the early introduction of the Galaxy S7 smartphone and streamlining of the rest of its phone range. Samsung's sales rose to KRW 49.78 trillion from KRW 47.12 trillion a year ago, even stronger than its initial guidance.
The mobile division posted sales up 8 percent year-on-year and 12 percent higher sequentially to KRW 26.94 trillion. Consumer electronics sales were also up 4 percent annually to KRW 10.62 trillion, led by demand for high-end TVs, and semiconductor revenues rose 9 percent to KRW 11.15 trillion.
Samsung's operating profit increased to KRW 6.68 trillion from KRW 6.14 trillion a year ago, and net profit rose to KRW 5.25 trillion from KRW 4.63 trillion. The EBITDA margin improved by 2 percentage points to 24 percent.
Samsung attributed the growth in mobile to the earlier release of its flagship model the S7 this year, as well as improved profitability in its mid to low-end phones through a streamlined line-up. The company also saw good sales of the renewed A and L series smartphones.
In Q2, Samsung expects the smartphone and tablet market to be flat versus Q1 and will focus on expanding the S7 sales and maintaining profitability in the rest of its range. It expects smartphone and tablet demand to slow this year. The company plans to launch another flagship device in the second half to help sustain its growth.
