For global investors, the initial second-quarter results from the South Korean giant, Samsung, is all good news, especially for the ones who bid up their shares 20 percent in 2016.
In fact, they have been a great help in creating an even environment during this week, which saw one of the key smartphone rivals, Huawei, a China based company, say that it has filed more number of patent lawsuits against Samsung in the USA and China.
Meanwhile, for most of the US based tech investors, the financial update of Samsung suggests that global smartphone buyers are likely to expend a premium price for this innovation. Now, that is going to be really important for global smartphone giants like Apple (AAPL) and some of the leading smartphone component makers like Texas Instruments (TXN) and Qualcomm (QCOM) that competes in a fast maturing market where growth of unit has really slowed down.
Late this Wednesday, Samsung estimated its overall operating profit in this quarter and reported a surge of up to 17 percent from the past year to approximately USD 7 billion – the highest amount in a quarter in the past 2 years.
That has been much better than the expectations of analysts who have been covering the stock of Samsung in Korea. The company has predicted a growth in the revenue by 3 percent for this period. As a result, the news has driven its shares 2 percent higher, thus continuing its trend that has made Samsung the leading and one of the best performing large cap tech stocks of 2016. Samsung shares are not listed on any major American exchanges, but there’s a U.S trade ETF which tracks the entire Korean stock market, EWY, and has counted Samsung stock as the top 10 holding.
Although these numbers are just preliminary figures, Samsung would report its full results later during this month. The company has widespread businesses ranging from flat screen televisions to computer chips. So it is pretty early to know where and how the sales growth has taken place.
Samsung has been selling more of the less-expensive smartphones in today’s emerging markets like India. However, the sudden surge in its operating profit points to the increased sales of the high-priced flagship smartphones like Galaxy S7.