Galaxy S7 pre-order numbers breaks records

[StrangerGuy]

Lol love the kool-aid. Apple legitimately has some of the best (if not the best) devices you can buy, but this argument is ridiculous. Choice is bad b/c it makes me have to decide. Car buying must be an absolute nightmare for you.



First your info seems completely off - everything I've read says the S7 is selling maybe 20-25% better than the S6. No idea where you'd getting 3X since that would be a market shaking event since that would be 1st month new iPhone volumes. Turning a multi billion quarterly profit on smartphones, even as the S7 landed at the tail end of the quarter for Samsung, is hardly doom and gloom.

That being said, Samsung is never going to return to the previous levels of smartphone profitability, but how that qualifies as trouble is beyond me. It's the reality of Android with companies like Huawei releasing flagship quality products at upper midrange prices.

The profit margins that pad Apple's cash hoard (which honestly is doing nothing for them but sitting offshore) or their stock buy back are basically being kept by Android consumers.

http://forums.appleinsider.com/disc...-than-expected-sales-of-flagship-galaxy-s7/p3

"It's also above consensus estimates from investors, who expected profits of 5.53 trillion won, according to polls conducted by Bloomberg. It's estimated that the S7 lineup sold 9 million units in their first month, tripling that of the previous-generation Galaxy S6."

There you go.


I had some fun with number crunching too:

Samsung Mobile operating profit (before taxes, interest etc) Q1 2015 = ~$2.7 billion

So, estimated Q1 2016 operating profit +10% YoY = ~$2.97 billion

9.5 million S7s sold at ~$700 MSRP each = ~$6.6 billion. (See the big profitability problem already?)

Assume 9.5 million S7s only contributes to the $270 million in increased profit, operating profit per S7 = $28.40 and cost to sell a S7 = $666. True profitability should be even lower because for starters, non-S7s should contribute a bit to the increase in profit.

Compare to a PC OEM at average $14.87 per unit, or an iPhone estimated at $184.

 

[dawheat]

http://forums.appleinsider.com/disc...-than-expected-sales-of-flagship-galaxy-s7/p3

"It's also above consensus estimates from investors, who expected profits of 5.53 trillion won, according to polls conducted by Bloomberg. It's estimated that the S7 lineup sold 9 million units in their first month, tripling that of the previous-generation Galaxy S6."

There you go.


I had some fun with number crunching too:

Samsung Mobile operating profit (before taxes, interest etc) Q1 2015 = ~$2.7 billion

So, estimated Q1 2016 operating profit +10% YoY = ~$2.97 billion

9.5 million S7s sold at ~$700 MSRP each = ~$6.6 billion. (See the big profitability problem already?)

Assume 9.5 million S7s only contributes to the $270 million in increased profit, operating profit per S7 = $28.40 and cost to sell a S7 = $666. True profitability should be even lower because for starters, non-S7s should contribute a bit to the increase in profit.

Compare to a PC OEM at average $14.87 per unit, or an iPhone estimated at $184.

Source article is wrong and frankly fails the sniff test. Look up volumes from last year for the first month of the S6 and you'll see 6-8 million.

Almost every other site is correctly reporting 20% and everyone is referencing Counterpoint's numbers which came out a couple days ago.

http://www.counterpointresearch.com/galaxys7sales1q2016

Your number crunching doesn't make sense either since Samsung guided 10% profit growth for all of electronics (5.7 billion), not mobile. In fact profit growth looked tempered by larger than expected loss in displays. Your "number crunching" is embarrassingly amateurish.

I've said it before - Samsung is neither in the doom and gloom some try to make it or the take over the world others make it. They're doing fine, making plenty of money, and look for this year at least to have arguably the best devices you can get, absolute.