Is SAMSUNG ELECT LTD(F) (SSNLF) Ready To Meet The Demand For S6 Edge Models?

The countdown for SAMSUNG ELECT LTD(F) (OTCMKTS:SSNLF)’s Galaxy S6 Edge models has commenced as the product is slated to go for sales on Friday. The company appears to be geared to retrieve its lost ground in the smartphone segment. The company’s market share dropped drastically after the launch of Apple Inc. (NASDAQ:AAPL)’s iPhone 6 and 6Plus in September last year.

Record Shipments

Even before the sale of Galaxy S6 started, SAMSUNG ELECT LTD(F) (OTCMKTS:SSNLF) indicated that it sees record shipments for the new models. However, there were some doubts expressed in the media whether the company would be able to meet the demand as a result of constraints on production. The new model features a curve-edged.

Following the spate of favorable reviews, there has already been enough build up of interest for the fresh S6 models. Samsung is expected to recover its earnings significantly in the current year to be boosted by strong S6 models. In the March quarter, its operating profit was the biggest in three quarters.

In South Korea, curved-screen variant costs more than $120 compared to the regular S6 model due to strong demand. As a result, SAMSUNG ELECT LTD(F) (OTCMKTS:SSNLF) is expected to improve its margins, as well as, boost earnings of its mobile segment, according to analysts and investors.

Supply Constraints

The South Korean company said that it expects to face constraints on supply in the near future for its curve-screened S6 edge type. The company’s mobile business head, JK Shin, however, said that it was working to improve production yields to limit the constraints on supply. The smartphone maker has not disclosed its shipment record of its previous model Galaxy S4, which was its top seller.

SAMSUNG ELECT LTD(F) (OTCMKTS:SSNLF) said that it preferred to make use of its mobile processor, as well as, modem chips in the Galaxy S6 phones. The company indicated that it might use the American chip maker’s products for new products in the future.

Viraj Shah

Viraj Shah has completed M.Com (Finance) and is currently pursuing his CFP. He tracks US markets along with other global markets like India very closely. He is very passionate about stocks, real estate, and technology. He also believes that money can always be made in the market.

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