Samsung has published its Q1 2015 financial results. The headline figures for the quarter are revenue of 47.12 trillion KRW ($44 billion) and operating profits of 5.98 trillion KRW ($5.63 billion). Compared to the previous quarter this result represents an 11 per cent decrease in revenue but an increase in profits of 690 billion KRW.
These results have come a little too early to be a sign of the rewards to be reaped from the launch of the well received Samsung Galaxy S6 and Galaxy S6 Edge smartphones. Overall the firm sold 99 million handsets during Q1 and more than 80 per cent of them were smartphones. The upward movement in sales numbers this quarter is thanks, in part, to Samsung's mid-range Galaxy A series smartphones. In the next quarter "flagship smartphone sales are expected to pick up". Tablet sales were down – Apple detailed a similar result in its recent financial posting.
As noted by the BBC, Samsung's mobile business was outpaced by its chip business during Q1. DRAM demand remained high thanks to industry wide launches of flagship smartphones that depend on Samsung parts. NAND demand was said to be solid and Samsung's chipmaking operations became more profitable with the popularity of its 14nm fabrication facilities.
Turning to Samsung's display panel business, this segment did well thanks to increased demand for premium TV panels, such as those for UHD TVs. OLED panels and high-end smartphone displays also increased earnings contributions quarter-on-quarter. Samsung is reasonably confident that these trends will continue into the second half of 2015.
Looking ahead Samsung is positive about the ability of its products and services to compete and be in demand but admits that there may be challenges ahead. Competitors are expected to create tougher market conditions and the weak Euro and emerging market currencies could negatively affect its sales.