Samsung has seen significant revenue growth throughout its business over the past three months, despite ongoing scandals and the ghost of the Galaxy Note 7 hanging over it. It’s also very confident about the near future, trumpeting the arrival of the Galaxy Note 8, a series of new midrange and low-end smartphones, plus continuing demand for the Galaxy S8 and S8 Plus.
From April through the end of June 2017, Samsung took in $54.8 billion in revenue, with $12.8 billion coming as profit, which it says is a record-breaking quarter for the company. It’s also a 72-percent increase over the first three months of 2017, and up again from the end of 2016, after the small slump it endured during the height of the Galaxy Note 7 turmoil. To put the $12 billion profit into perspective, at the end of September last year, it posted $4.5 billion in profit.
The Galaxy S8 and S8 Plus have been instrumental in Samsung’s return to massive profits. In its earnings report, it says the “strong sales” of the new phones have driven the recent increases, and the S8 Plus in particular has been a big seller. Samsung states it makes up more than 50 percent of all Galaxy S8 phone sales, despite being larger and more expensive than the regular
Samsung’s next major phone release will be the Galaxy Note 8, expected on August 23, which it mentions throughout its earnings report. It’s going to market the phone hard, so expect to see plenty of ads and promotional activity surrounding the phone, something it warns investors will affect earnings in the next quarter. It’s also mindful of Apple and Google’s smartphone plans for the remainder of 2017, saying that while there will be an increase in demand for its devices, “competition is expected to intensify as new smartphone models are released by competitors.”
The Galaxy Note 7 isn’t the only scandal Samsung has endured over the past year. The ongoing bribery and corruption trial centered around former South Korean president Park Geun-hye has seen Samsung vice president Lee Jae-yong arrested and put on trial, with sentencing expected soon. The company’s stock price has taken several hits; but the earnings report proves none of these problems have affected the public’s willingness to go out and buy Samsung products.
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