Samsung’s Q1 2016 earnings guidance suggests strong Galaxy S7 sales

Samsung has issued its earnings guidance for the Q1 2016 and the company is expecting to beat estimates with a healthy $5.7 billion (USD) in profit.

According to its release, Samsung’s operating income for the quarter will top 6.6 trillion won, which is sharply up from analyst expectations of 4.43 trillion won. Much of the success is directly attributed to its mobile division as it jumped 19 percent in the quarter to account for $2.75 billion (3.18 trillion won).

Unfortunately, Samsung declined to give an indication to the number of flagship Galaxy S7 and S7 edge devices it sold. However, analysts are expecting Samsung to announce sales of 9 million units of the new smartphones, with the total number of devices shipped to reach 78 million for the quarter.

Samsung is the world’s largest mobile phone manufacturer and also warned that the smartphone market will be slower this year as competition is getting fierce, specifically from Apple and price-conscious companies like Huawei, Xiaomi, and Lenovo.

Related reading: Samsung Galaxy S7 and S7 edge review: An act of refinement

[source] Samsung, Bloomberg [/source]