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Samsung Electronics to Report First Profit Growth in Two Years

Samsung Electronics to Report First Profit Growth in Two Years

Samsung Electronics has been reporting low profits for quite a while now but a new report from The Wall Street Journal suggests that Samsung is about to report the first profit growth in two years, which was to be expected.

The report forecasts an earning report of $5.3 billion, the equivalent of 6 trillion won which is a 42 percent increase in a single year. It’s all very surprising especially considering that Samsung has been reporting constant losses for multiple quarters but what’s truly surprising is that it wasn’t Samsung’s flagship that brought forth the profit but rather Samsung’s business strategy, like reduced intervals between its high-profile smartphone releases which increased sales.

The outlook seems positive if we take a look at the facts. First of all the tech company could announce its next flagship, the Galaxy S7, in January and the Tizen ecosystem is also growing at a very fast pace, with Samsung attracting developers to this platform by offering them 100% of the app revenue. Samsung Pay is growing faster than any of its competitors, having surpassed 1 million users in South Korea and bringing in $30 million in accumulated transaction volume in the first month alone.

Samsung’s chip manufacturing business is also growing at a very fast pace, raking in billions of dollars and bringing forth interesting partnerships, like the one between Apple and Samsung. From an investor’s perspective, Samsung’s stocks have also recovered from the big August dip where one share was 1,067,000 won ($940) to 1,308,000.00 won (~$1,157) which basically means investors are once again willing to put their money into one of the biggest companies on the planet.