Both the revenue and operating profit hovered above analysts' estimates of 49.14 trillion won and 5.62 trillion won, compiled earlier by stock information provider FnGuide. The firm's market share dipped slightly, to 23.6 percent from 24 percent a year earlier.
The launch of Samsung's Galaxy S3 in 2012 crowned the South Korean electronics giant the world's smartphone king and helped fuel five consecutive quarters of record profits.
LG Electronics later in the day first-quarter-results-2016">reported an operating profit of 505.2 billion won for the first quarter, a year-on-year increase of 65.5 percent. In the medium term, Samsung will struggle to keep up its earnings growth, said Shelley Jang, Seoul-based director of credit-rating company Fitch Ratings. The success of Samsung's latest blockbuster model Galaxy S7 launched last month and price drop on older popular models such as Galaxy S6 and Note 5 has turned the market in its favour, analysts said. This has been an other successful gamble for the South Korean company as the sales of Samsung Galaxy S7 and S7 Edge have propelled it to great returns in the just-ended first quarter of 2016.
As well as the pricier phones, Samsung also saw good profits from the lower end of their range.
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The Consumer Electronics Division - encompassing the Visual Display (VD), Digital Appliances (DA), Printing Solutions and Health & Medical Equipment (HME) businesses - posted 10.62 trillion won in consolidated revenue and 0.51 trillion won in operating profit for the quarter.
The company's Display Panel business saw earnings decrease due to a sharp decline in profits from LCD panels, despite earnings from OLED panels being boosted by the Galaxy S7. With the Olympics and other global sporting events forecast to drive global demand for large-size TVs, the company expects strong improvements in operating results YoY. Meanwhile, the company spent 4.6 trillion won on facility upgrade, with 2.1 trillion won for semiconductor business and 1.8 trillion won for display business.
It is definite that Apple will post higher numbers and deliver far more profit than Samsung at the end of the year, but the benefits of Samsung consistent efforts to dominate are evident.
Samsung priced the Galaxy S7 below its predecessor and also fixed criticisms of the earlier model to capture customers between new product releases by Apple. Samsung also said it will buy back 2.03 trillion won worth of common and preferred shares.
Source: Samsung Profit Beats Estimates as Early S7 Smartphone Release Pays Off
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