Samsung sees bounce in Q1 ahead of Galaxy S8 – CNET (Apr 6, 2017)
The first part of this article suggests that the strong Q1 results Samsung is forecasting would be a bounce back from the Note7 debacle, but the reality is that Samsung already saw that bounce back in Q4 2016, which was its best-ever quarter for operating margins and flat revenues year on year despite the hole left by the Note7. This quarter would improve margins still further while also potentially maintaining flat or slightly increased revenues year on year again. What Samsung doesn’t tell us in these preliminary results notices is where the money is coming from, but last quarter semiconductors made a big contribution, and it’s likely that this division is the big hero again this quarter. It’s by far the company’s most profitable division, and although it contributes less revenue than the mobile segment, its contribution has been growing there too. So although the Note7 rebound narrative is attractive, this is really about components not phones, as the phone business continues to be roughly stagnant rather than thriving.
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