The Samsung Electronics launched the latest version of its flagship project, Galaxy 7 on March 11, 2016 and the market response to this Edge model has been overwhelming and far better than expected in the countries of China, North America and Middle East.
The launch of Galaxy S3 in 2012 helped Samsung to emerge as the king of smart phones and the company reaped huge profits for five consecutive quarters but the subsequent models failed to stir up that excitement among the buyers and for seven consecutive quarters the company experienced plummeting sales and dwindling profits. Finally, with the launch of Samsung S7 and S7 Edge, the company has sprung back to its number one position.
The analysts believe that the pricing strategy of Samsung coupled with the absence of the launch of new products from the competitors, have boosted the sales of Galaxy S7. According to the Counterpoint Technology Market Research, 10 million of Galaxy S7 phones have been sold in the month of March, which is 25 per cent higher than a year ago.
This updated Galaxy model flaunts features like water resistance, improved camera features, expandable micro SD storage space and is cheaper than its previous models. The company benefited from the streamlining of its cheap smart phones that it sold in the emerging markets, which helped to save the costs on components.
The mobile division was the company’s and the South Korean firm’s biggest source of profit since the year 2014. The electronic giant of South Korea recorded a profit of $5.8 billion dollar, which is an increase of 12% over a year ago period. Profit from the smart phone division shot up by 42% from a year earlier and is expected the sales would continue to increase though the overall growth in the industry remains flat. On the other hand, Samsung’s major competitor Apple experienced its first drop in sales, in 13 years.