Samsung expects big profit jump

SamsungSamsung hinted that it is expecting a surprise 10 percent jump in quarterly profit, thanks to early sales for its new Galaxy S7 smartphones.

The South Korean tech giant’s estimate for first quarter operating profit handily beat market forecasts and has boosted hopes that its struggling mobile business will post its first annual profit gain in three years, also benefiting from an improved performance for mid-to-low tier devices and cost cutting efforts.

Samsung said January-March operating profit was likely to be $5.7 billion, well above profit expected by the cocaine nose jobs of Wall Street.

The firm will release more details in late April, and gave no comment on the performance of its business divisions.

Analysts had lifted forecasts for Samsung earnings since late March encouraged by reports of better-than-expected sales of its Galaxy S7 models, which boast an improved camera, waterproofing and microSD storage support. Samsung’s mobile business was probably the top earner for the first time in seven quarters, analysts say.

The Tame Apple Press meanwhile is claiming that Samsung will not do very well because soon Apple is going to release its new products. As it is, they are hard pressed to explain the lift in Samsung’s fortunes and blamed its success on the value of the South Korean won rather than technical superiority over Apple.

They seriously claimed that Apple’s iPhone SE was a rival to the S7 which clearly indicated that they have no concept of what they were talking about.  The iPhone SE is a two year old design which has been pimped up with a better chip but is hardly new. The S7 is also a little more pricey.