Scalper1 News
Samsung Electronics reported better-than-expected preliminary first-quarter earnings as its latest flagship smartphone proved much more successful than its predecessor, even as Apple ( AAPL ) is expected to report its first iPhone sales decline ever. The South Korean electronics giant had operating income of 6.6 trillion won ($5.7 billion), far above analyst estimates for about 5.5 trillion won. Revenue was 49 trillion won, up 4% and slightly above estimates. Samsung released its S7 smartphones in March, a month earlier than its S6 line in 2015. Nine million S7 phones were sold in their first month, triple what the S6 did in its first month. The S7 has a better camera and microSD storage support. Samsung also didn’t run into supply shortages of curved-glass screens for the jumbo S7 Edge, unlike last year’s Edge. Due to the S7 and an improved, streamlined phone product lineup overall, the smartphone business was likely the company’s best division in several quarters. Meanwhile chip operating profit likely fell about 15%. A cheaper won vs. the dollar also bolstered results. Meanwhile, the Apple iPhone 6S has not been a blockbuster, despite technical improvements vs. the 6 line. Apple revenue and iPhone unit sales likely fell in the first three months of the year vs. early 2015. Late last month, Apple began selling the iPhone SE, a new 4-inch phone. It fills out Apple’s product line, especially in emerging markets, but it early sales don’t appear to be huge and its margins are likely smaller than the flagship smartphone. Apple rose 1.05% to 110.96 on the stock market today, just below its 200-day line. Apple hasn’t closed above that level since Nov. 4. Scalper1 News
Scalper1 News