When Samsung got an 'Edge' over Apple's iPhone
Just a day after Apple posted its first ever revenue decline in 13 years, Samsung posts 42% jump in profits
Just a day after Apple reported the first ever fall in iPhone sales since its launch in 2007, Korean-major Samsung has said that its mobile division saw a 42% jump in operating profit.
The company said that its smartphone sales increased to 92 million on the back of successful Galaxy S7 and S7 Edge in the given three months as against 51.19 million iPhones.
While Apple's sore point was the decline in sales of the iPhone during the quarter, Samsung's revenue growth was on account of the Galaxy S7 and S7 Edge.
A major blow to Apple came from the declining sales from China where its sales fell 32% sequentially and 26% on a year-on-year basis.
The divergence doesn’t end here. Apple said that it expects revenues to fall further, between $41 billion to $43 billion in the coming quarter. Samsung, on the other hand, said, “Looking ahead to the second quarter, while demand for smartphones and tablets is forecast to remain flat due to continued weak seasonality, the worldwide rollout of the latest flagship models as well as an increase in shipments of the mid-to-low-end Galaxy A and J series are expected to help the company maintain robust sales momentum and profit.”
Although, there is no denying that the smartphone market globally is softening. Samsung said, “….it anticipates softening demand in the smartphone market and negative growth in the tablet market.”
“Our team executed extremely well in the face of strong macroeconomic headwinds,” said Tim Cook, Apple’s CEO.