SAMSUNG ELECT LTD(F) (OTCMKTS:SSNLF)’s S6 Expected Shipments To Be 55 Million In 2015


SAMSUNG ELECT LTD(F) (OTCMKTS:SSNLF) hopes to put brakes on the recent surge in the sale of Apple Inc. (NASDAQ:AAPL)’s iPhones with its Galaxy S6 smartphones. The Korean company is expecting robust sales of the S6 devices, and analysts agree that is possible. Samsung could end up selling 55 million S6 smartphones this year, a development that could give a great boost to the company in regaining ground against Apple.

The company launched two versions of Galaxy S6 with the model known as Galaxy S6 Edge being highly priced thereby offering higher profit margins. The demand for premium Galaxy S6 Edge is expected to surpass supply as Samsung works hard to produce enough screens for the device. The S6 Edge device features a flexible screen that stretches down both sides while the S6 has a traditional flat screen.

20 markets in initial release

Samsung is initially releasing the new Galaxy S6 smartphones in 20 markets this week, including the U.S., Germany and the U.K, while China release will start on April 17.

Analysts see Samsung making more profits from the new line of smartphones given that it has used its own processors and wireless chips on the devices, thereby boosting profit margins. New features in the phones are also expected to fuel sales, leading to more revenue and profits for the company.

Great design and specs

According to analyst Keon Han of Credit Suisse, the Galaxy S6 and S6 Edge are the best smartphones ever from Samsung based on their specifications and design. Han holds that carriers and consumers all agree that the phones are indeed different from the older models, which is another reason Samsung looks poised to hit success with the new devices.

Although Samsung is expected to sell as many as 55 million units of its new smartphones this year, the estimates show that the sales will be outweighed by Apple’s iPhones, which sold over 74 million units in the December quarter alone.

Ripple effect

However, the use of the most advanced chips in the S6 could drive gains in other arms of Samsung. The company’s semiconductor business could end up getting huge demand for the chips from other smartphone makers.

Samsung’s overall operating come is expected to reach 7.4 trillion won or about $6.7 billion in 2Q, higher than 7.2 trillion won in the same quarter a year ago.

Neha Gupta

Neha Gupta has been in the financial space for over six years now. Gupta earned her MBA degree from Symbiosis Centre of Distance Learning in 2009 and her passion for finance led her to pursue Chartered Financial Analyst (CFA) course. She has successfully completed Level II of her CFA. She is a veteran in article writing, which is depicted in her numerous pieces published on SeekingAlpha, Nextiphonenews, InsiderMonkey, MarketWatch, and Techinsider. Her crisp and eloquent writing finds its best place in Researchcows, where emphasis is given on developing rich content for various websites, products, business plans, trainings, and book writing.

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