Samsung Electronics reported operating profits of $6.06 billion (6.9 trillion Won) for the quarter ended June 30 2015, with 40% of it coming from the IT & Mobile Communications Division (IM). This division reported profits of $2.43 billion (2.76 trillion Won) from revenues of $22.91 billion (26.06 trillion Won).
Out of the total IM earnings, the mobile business accounted for $22.42 billion (25.50 trillion Won) in revenues. Revenues from mobile segment were up 2% from $21.99 billion (24.99 trillion Won) in the previous quarter, and down 9% from $21.97 billion (27.51 trillion Won) in the same quarter last year. It accounted for 51.5% of Samsung’s overall revenues.
During this quarter, overall revenues increased slightly as ASP (average sale price) improved due to S6 sales; Profit increased marginally QoQ due to the decrease of mid/low-end smartphone shipments and increased marketing expenses. As always, the company has released very little operational detail, hence it’s not clear how much the decline really is.
Smartphone shipments decreased QoQ due to low sales for older mid/low-end models, however ASP increased significantly driven by improved product mix.
– In March this year, Samsung said it would invest as much as $500 million to $1 billion in a manufacturing unit that would produce smartphones and tablets in India. Tamil Nadu and Gujarat are the other states the company considered for the plant. The same month, the company officially announced its Galaxy S6 and S6 Edge smartphones at the MWC. It also launched Samsung Pay, which would allow users to make payments using smartphones, at the same event.
– In January this year, at CES 2015, Samsung President & CEO B.K. Yoon claimed that all of its products will be Internet of Things (IoT) enabled by 2020. The company said it plans to ensure 90% of all its devices are IoT enabled by 2017. Samsung also announced it would invest over $100 million in 2015 in IoT startups by strengthening its accelerator program and expanding international developer events.
– In December last year, HyunChil Hong took over from B.D. Park as the managing director of Samsung India & president of South West Asia.
Other Businesses :
– Samsung reported $3.4 billion (3.87 trillion Won) in profits from its Device Solutions division, which consists of the Semiconductor & Display Panel businesses, up by 14% from the previous quarter.
– The Consumer Electronics division, encompassing the Visual Display, Digital Appliances, Printing Solutions and Health & Medical Equipment businesses, reported profits of $0.18 billion (0.21 trillion Won), up 49.9% from $0.12 billion (0.14 trillion Won) in the previous quarter. The division reported revenues of $9.85 billion (11.20 trillion Won), up 9% from $9.02 billion (10.26 trillion Won) in the previous quarter. The Visual Display business accounted for $5.86 billion (6.66 trillion Won) of earnings.
Samsung reported overall revenues of $42.67 billion (48.54 trillion Won) for the quarter, up 3% from $41.43 billion (47.12 trillion Won) in the previous quarter, and down 7.3% from $46.02 billion (52.35 trillion Won) in the same quarter last year.